After months of investigation, the European Union has announced additional tariffs on electric vehicles imported from China, because of what it sees as Beijing’s unfair support for companies that undercut European carmakers. The decision deals a blow to the Chinese government, which had been lobbying hard against the taxes, and EV producers in the country. Most companies are facing hefty extra tariffs of between 17.4% and 38.1%, on top of the 10% duty already levied by the bloc.
The Shanghai-based automaker, which was China’s second largest seller of battery EVs, pug-in hybrids and fuel cell cars last year, will likely need to build a factory in Europe to bypass these duties. Geely, China’s fourth largest NEV retailer and the owner of Volvo, faces 20% in additional duties, a penalty which is likely to be a “mixed bag,” Sebastian said. His analysis suggests Geely could still profitably export to the EU, but margins will narrow severely.