The European Commission will apply additional duties of up to 38.1% on imported China-made electric cars from July, a move that Beijing is likely to retaliate against.
It exports top-end models like the S-Class and Maybach to China, while its mid-range models are produced locally. Another joint venture with Great Wall Motor Co produces electric versions of the Mini Cooper and Mini Aceman in China to export globally, with Europe-bound vehicles liable for the tariffs.Volkswagen holds the biggest share of the Chinese market among foreign companies with 14.5%, where it makes around 30% of its sales.
BMW and Volkswagen, which has a joint venture with SAIC Motors producing EVs in Shanghai, in April pledged more than $5 billion to expand research and production in China.The Volkswagen-owned luxury carmaker is highly exposed with 21% of its sales coming from China in the first quarter, all of which are imported vehicles.