The article is being updated with details.
Chinese electric vehicle (EV) makers are calling for the imposition of a 25% tariff on large European cars with internal combustion engines (ICE), according to a report by state media outlet CCTV. This proposal comes in response to the European Union’s decision to levy tariffs as high as 48% on China-made EVs.
The request was made during a closed-door meeting on Tuesday between Beijing’s Ministry of Commerce and representatives from four Chinese and six European auto manufacturers, as well as various industry and research bodies, CCTV says.
The EU announced last week that it plans to increase tariffs on Chinese EVs following an investigation. State-owned automaker SAIC Motor (formerly Shanghai Automotive) is expected to be the most affected. During the meeting, a Chinese trade representative also accused the EU of using the investigation as a pretext to appropriate business secrets from Chinese EV manufacturers.
The suggestion to raise the temporary import tariff on cars with engines larger than 2.5 liters was initially proposed in an article by the state-controlled Global Times in May, preceding the EU’s probe.
According to the European Commission (EC), the aim of the new tariffs is to ensure fair competition. Chinese EVs increased their market share in the EU to 8.2% in 2023, up from 0.5% in 2019. Despite many Chinese brands entering the EU market in recent years, their sales are mostly under expectations. However, there seems to be no concern for most of them as they are not starting aggressive pricing like in China and are mostly staying under the radar and learning. Exception might be SAIC’s MG, which is China’s European sales champion, followed by Geely’s Smart and Polestar.
Despite the tariffs, some Chinese EV manufacturers, such as BYD, might be able to absorb the additional costs. BYD was subjected to extra duties of 17.4%, the lowest rate among the three Chinese manufacturers scrutinized by the European Commission and lower than the industry average of 21%. Those figures are on the top of existing 10% import duties.
