The European Union has finalized punitive tariffs on imported electric vehicles (EVs) from China, potentially reaching 45%. Despite this, Chinese manufacturers are committed to maintaining current prices in Europe to avoid market disruptions.
MG Motor France, significantly affected by these tariffs, will absorb the costs and keep its 100% electric model prices unchanged in France throughout 2024. The company, a subsidiary of SAIC, criticized the tariffs as excessive, warning they could hinder Europe’s green transition.
BYD plans to follow suit, keeping prices stable in Italy until year-end. Seat, importing the Cupra Tavascan, is also striving to prevent price increases for deliveries in 2024.
The tariffs vary from 7.8% to 35.3%, depending on manufacturers' cooperation with the EU investigation. For instance, MG Motor faces a new 35.3% tax on top of an existing 10% import tariff. Affected models include the Tesla Model 3, BMW iX3, various electric Minis, Dacia Spring, Volvo EX30, and all Polestar and Smart models.
Volvo has responded by planning to start EX30 production in Ghent, Belgium, by the first half of 2025 to mitigate price hikes.
While manufacturers are currently absorbing tariff impacts, uncertainty regarding their duration and potential sales effects may lead to future price adjustments, highlighting the complexities of competition in the global EV market and the challenges of energy transition.