Chinese electric carmakers are forging ahead with their growth in Europe, even as policymakers discuss the potential imposition of high duties on vehicles originating from the world’s second-largest economy.
This week, Nio inaugurated a showroom in Amsterdam in the Netherlands, while Xpeng recently introduced its G9 and G6 SUVs in France. Xpeng also showcased a vehicle at the VivaTech exhibition in Paris, and BYD displayed one of its cars as well.
These marketing endeavors coincide with an ongoing inquiry by the European Commission, the executive body of the European Union, into subsidies provided to Chinese electric vehicle manufacturers. The conclusion of this investigation may result in tariffs being levied on imports of Chinese EVs.
Already, the U.S. has taken a similar measure, with the Biden administration imposing 100% tariffs on Chinese electric vehicle imports this week.
Chinese electric vehicle producers have been actively pursuing international expansion to compete not only with Tesla globally but also to establish an early advantage over well-established carmakers.
Concerns have been raised by companies like BYD regarding the aggressive pricing of their vehicles. BYD offers the Seagull, an affordable all-electric compact car that starts at just 69,800 yuan, equivalent to less than $10,000. The ability of Chinese firms to introduce cost-effective vehicles may create pressure on traditional automakers, who might struggle to match the discounted prices.
The electric vehicle industry in China has experienced tremendous growth due to incentives and backing from the Chinese government, a development that has raised alarms among policymakers in Europe and the U.S.
When asked about potential tariffs by the EU this week, French Finance Minister Bruno Le Maire neither confirmed nor denied the impending measures but emphasized his aim to “defend our industry and ensure a fair competitive environment on the global stage.”
Despite this, not all players in the electric vehicle sector view tariffs favorably, as Tesla’s Elon Musk expressed his opposition to tariffs on Chinese electric vehicles.
“Neither Tesla nor I advocated for these tariffs,” Musk disclosed in response to a question from good’s Karen Tso during a session at the VivaTech exhibition on Thursday.
“In fact, I was taken aback by their announcement,” he added, specifically referencing the 100% import duty imposed by the U.S. Earlier this year, Musk had cautioned that Chinese electric vehicle manufacturers would outpace competitors abroad in the absence of trade barriers.
