According to media reports, automobile manufacturers have indicated that the EU's decision to impose import tariffs on electric vehicles made in China is not expected to immediately affect the prices of the impacted vehicles.
The new tariff rates range from 7.8% for Tesla (which has received fewer subsidies in China, resulting in a lower tax rate) to 35.3% for manufacturers that did not cooperate with the EU's anti-subsidy investigation.
When combined with the current 10% tariff on products imported from China, electric vehicle manufacturers exporting to Europe from China could face a maximum tax rate of 45%.
MG, a subsidiary of SAIC Motor Corporation, will be subject to the highest tariff rates. However, MG's French division stated that the new additional tariffs will not affect the prices of electric vehicles sold in France this year.
The French division of MG described the tariffs imposed by the EU on electric vehicles imported from China as "excessive," claiming they would hinder the green transformation of the European automotive industry. Despite this situation, the company has decided to keep the prices of its pure electric models in France unchanged in 2024.
Sources also revealed that MG's prices in Italy will remain the same, although the company will assess potential measures to maximize sales in Italy. The source noted that MG's pricing decisions in Italy are made on a monthly basis.
Market research firm Dataforce reported that MG is the best-selling Chinese automotive brand in Europe, with a total registration of 159,387 vehicles in Europe in the first eight months of this year.
However, most of MG's sales in Europe still come from its gasoline, hybrid, or plug-in hybrid models, which are not affected by the EU's increased tariffs on electric vehicles from China.
At the same time, sources stated that Chinese electric vehicle giant BYD is also expected to maintain its prices in Italy until the end of this year.
Additionally, SEAT, a subsidiary of the Volkswagen Group, which imports the Cupra Tavascan electric vehicle from China to Europe, stated in a release that while the new "punitive" tariffs put the future of the Tavascan at risk, the company will do everything possible to prevent the additional EU tariffs from affecting the Tavascan's price, and all Tavascan models delivered in 2024 will maintain their prices.
Other electric vehicles exported from China to Europe include the Tesla Model 3, BMW iX3, BMW electric Mini, Dacia Spring, and Volvo EX30, as well as all Polestar and Smart models.
Volvo Cars plans to begin production of the EX30 in Ghent, Belgium, in the first half of 2025 to circumvent the EU tariffs.
