[Job Change x Trend News] China v.s. EU? (2) Summary of the announcement of tariff increases on China and its impact

Here you will find trending news topics in the automotive and mobility markets around the world.

We carefully select interesting news in the automotive industry, both domestic and international, and translate and summarize the contents for your reference. We hope you will find it useful in catching up with the latest news in the industry.

EU to provisionally add tariffs of up to 37.6% on EVs imported from China.

Jul 4, 2024 By NHK

The EU announced that it will provisionally impose additional tariffs of up to 37.6% on Chinese-made EVs starting on May 5. This is a slight reduction from the 38.1% initially announced. This measure is based on the judgment that unfair subsidies from the Chinese government could harm European companies.

This additional tariff will be applied on top of the existing 10%. The provisional measures will be in place for a maximum of four months, after which they could continue for another five years if approved in a vote by EU member states.

The EU has been holding working-level discussions with the Chinese side and intends to continue these discussions to find a solution. Meanwhile, attention is focused on what countermeasures the Chinese side, which is opposed to these tariff measures, will take.

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BYD to open Thai factory as EU imposes new tariffs on Chinese EVs kick in

July 3, 2024 by Nikkei Asia

BYD plans to open its first plant in Southeast Asia in Thailand’s Rayong Province and plans to cut prices significantly.The plant, which will receive a $486 million investment, will have an annual production capacity of 150,000 units, which will be exported primarily to Southeast Asia and Europe.

This opening coincides with the timing of the EU’s introduction of new tariffs on Chinese EVs.The EU sees Chinese subsidies to the auto industry as unfair and is taking countermeasures, but the Chinese side denies this.

Chinese manufacturers are rapidly gaining market share in the Thai market due to low trade barriers, etc. BYD had 40% of the Thai EV market by the end of 2022. The Thai government offers preferential treatment to EV makers, reducing import tariffs on finished vehicles and parts while the plants are under construction.

Meanwhile, Thailand’s automotive sector is concerned about increased competition from China and declining market share in export destinations such as Australia. Australia plans to introduce new vehicle efficiency standards in 2025, which could affect Thai exports of internal combustion engine vehicles.

Analysts are optimistic about the company’s sales volume and market share growth, as BYD’s technological leadership and vertical integration capabilities are not easily imitated by others.

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EU tariffs apply to Chinese-made EVs; Nio says it may have to raise prices in Europe (Original title: China-built EVs hit with EU tariffs; Nio says it may have to raise prices in Europe)

July 4, 2024 by CNBC

The European Union has officially decided to increase tariffs on EV imports from China. The decision has some automakers warning of possible price hikes.

The European Commission has confirmed that it will impose tariffs in the range of 17.4 %から37.6%based on its conclusion that Chinese EV manufacturers are receiving “unfair” subsidies. The measures could affect not only Chinese manufacturers such as BYD, but also European brands and Tesla that produce in China.

Chinese EV makers are pushing back against the decision, with Nio and Xpeng saying they will maintain their prices for now, but hinting at a possible price increase in the future. Tesla has already hinted at a European price increase for the Model 3.

The temporary tariffs will apply for four months, after which EU member states will vote on a final tariff for five years. Chinese and European officials have been discussing the tariffs, which the Chinese have criticized as a “protectionist act.

Meanwhile, Chinese EV makers have indicated a desire to continue their expansion into the European market ; Xpeng and BYD are considering or planning to establish production facilities in Europe, and Nio has also expressed its commitment to the European market.

These developments highlight the composition of Chinese manufacturers’ offensive in the European market and the countermeasures taken by the European side in response.

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