Fri Sep 20 07:43:08 UTC 2024: ## China’s EV Exports to Europe Remain Competitive Despite New Tariffs
**Brussels, EU** – Despite recent tariff increases by the European Union on Chinese-made electric vehicles, Chinese automakers remain competitive in the European market, industry experts say.
The EU’s tariffs, aimed at protecting European manufacturers from unfair competition, were revised downwards in August, with some reductions being minimal. However, analysts like Rhodium Group suggest that tariffs would need to reach 50% or higher to truly deter Chinese EV exporters.
“The current tariffs will not be a significant deterrent,” stated Joseph McCabe, CEO of AutoForecast Solutions. He argued that the EU’s tariffs are less severe than those imposed by North America, which has levied a 100% tariff on Chinese EVs.
The key to China’s continued competitiveness lies in their ability to offer newer, cheaper models. BYD, a leading Chinese automaker, recently launched its Dolphin model in Europe for under $21,550, significantly cheaper than Tesla’s cheapest model, the Model 3.
In response, European manufacturers like Volkswagen have announced plans to develop lower-cost electric vehicles to compete with the Chinese offerings.
“Now, profitability takes a back seat to market share,” said McCabe, highlighting the investment community’s focus on innovation rather than short-term financial performance.
However, William Ma, CIO of GROW Investment Group, warns that imposing excessively high tariffs could backfire, potentially leading to retaliatory measures from China.
The EU’s tariff talks, initiated in June, aim to address concerns about unfair subsidies provided to Chinese EV manufacturers, which could harm the European EV industry. These geopolitical tensions are expected to persist for at least the next year or two, Ma said.
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