Chinese EVs will remain competitive in Europe despite additional tariffs as they are still quite low, analysts say. Research by Rhodium group suggests tariffs of up to 50% are needed to significantly deter Chinese EV exports. EU’s tariffs are not as severe as those announced by North America because European and Chinese original equipment manufacturer are heavily interconnected. People look at a BYD Dolphin electric subcompact during the 2023 Shenyang International Auto Show on May 3, 2023 in Shenyang, Liaoning Province of China. Vcg | Visual China Group | Getty Images
Chinese electric vehicles will remain competitive in Europe despite the EU’s additional tariffs on autos made in the country, particularly after they were revised lower last month.
In the latest tariff revisions at end August, BYD, China’s behemoth automaker, saw tariffs cut to 17% from 17.4%, Geely to 19.3% from 19.9%, and SAIC saw a reduction to 36.3% from 37.6%.
To make the European market unattractive for Chinese EV exporters, tariffs have to be as high as 50%, according to research group Rhodium. It said that number might need to be even higher for vertically integrated manufacturers such as BYD.
The current tariffs will not be a significant deterrent to China’s EV-makers, said Joseph McCabe, president and CEO of global auto research company AutoForecast Solutions. “Tariffs on Chinese-made EVs will create a hurdle, but not a barrier to entry,” he added.
He pointed out that the EU’s tariffs were not as severe as those announced by North America because European and Chinese original equipment manufacturers are heavily interconnected. The U.S. announced a 100%
