The EU is imposing a 45% tariff on imported Chinese EVs for the next five years. The move is designed to level the playing field for European automakers who can’t currently compete with China-made EVs on price. Leading European car makers like Stellantis, Mercedes, and Volkswagen have struggled to break into the EV space. Too few models and their high cost have kept buyers away. The EU says China provides large subsidies to its domestic EV makers which allow them to sell EVs at unnaturally low prices in Europe, thereby unfairly beating competition from European automakers. But the EU action might be too little too late. Anticipating Western tariffs, Chinese EV companies are already investing heavily in EV factories and battery plants abroad. Chinese automaker and global EV giant BYD has chosen Hungary as the location for its first European factory. Another Chinese EV maker, Leapmotor, is setting up its plant in Poland. India needs to keep an eye out and learn from the experiences of the Europeans and the Americans. #ElectricVehicles #SustainableMobility #Sustainability #ZeroEmission #ClimateAction
Stephen Hale
4mo
The EU investigates China “subsidies” to the EV industry and published a table of results. The headline conclusion is that between 2009 - 2023 the Chinese government subsidised the EV industry to the tune of $230.9bn. This number is used to imply that had these funds credited to their bank accounts. The reality is a subtlety different, of this $183.4bn was in the form of inducement (sales tax exemption/rebates) to consumers to give up their ICE and move to an EV (as many other countries have done), these rebates were also available to non Chinese brands. EV sales are now 50% of the Chinese car market, in 2023 more than 8million EV’s were sold out of that Tesla sold ~600,000 of locally manufacture Model 3 and Model Y cars, since 2022 Tesla have sold 1.11 million locally manufactured cars with a total sales value of more than $18bn. Government supported infrastructure (charging networks etc ) to the tune of $4.5bn, R&D $25bn (included early battery research for non EV applications) and finally Gervernment Procurement $18bn - since it is labelled “Procurement” by the EU I can only assume the Chinese government bought something (products, services, equity?) so hardly a subsidy. I would love to see the numbers the EU market.
PIERRE CLAES
4mo
It's only politics assuming politicians are not illiterate they know as the EU carmakers know that this taxation will not help to save the EU companies if they don't come to ground level and produce cars instead of shares.
David Blume OBE
4mo
Love the AI picture btw…container vessel spitting wrecked cars out of its ass!
Dr. Raja Prasad
4mo
Slow Steady Strategy = Success...
Thy goal, the road thou choosest are thy fate
4moThe major EV companies have already bought EU companies like smart, Volvo etc. Chinese cars in Europe are much better than the cars legacy brands are still struggling to launch. Apart from their logo in front nothing is worth the price.