EU to impose multibillion-euro tariffs on Chinese electric cars (thread bans see post #1)

And eamon Ryan was saying last week that he expected the fall in electric car sales to be reversed by the arrival of cheap Chinese EVS, ursula just shot that in the foot with these tariffs, there will be alot less green meps in european parliament to complain. Ultimately the importance of European car industry and geopolitics trumps electric cars

just cars, or heavy vehicles also?

I don't think it will effect Tesla as much as some of the others. They will just switch more of our production to Germany. If Australia etc followed suit then it would be a different picture..

Just now.

End of the EV price war so. This along with reduced sales are likely to see a slowing in depreciation going forward.

Unless you have a Chinese car.

Why is it good news for us? We don't have a domestic car industry, so they're is no upside here.

It's a bailout by another name for Volkswagen.

Doubtful Australia will follow suit. Their local manufacturing ceased in 2017, so they don't have any industry to protect and increased competition means lower prices for consumers according to this report.

The bulk of the cars from China in the graph below are basically Tesla M3, MY and BYD Atto 3.

I suspect we will see quite a few new Chinese car brands popping up there as they can use it as a test bed to learn how to export to western markets.

Theres good reason for the German's to oppose it, its less about EVs and more about everything else it makes.

https://www.reuters.com/business/us-overtakes-china-germanys-top-trading-partner-2024-05-09/

In 2023, China was Germany's top trading partner for the eighth year in a row, with volumes reaching 253 billion euros, although that was only a few hundred million ahead of the U.S.

Last thing Germany wants is EU goods being slapped with retaliatory tarriffs in a trade war.

This is going to shake things up!!

Will it mean even less demand for new EV's but perhaps a positive bump in used EV values?

There are thousands of people employed in Tier 1/2 automotive manufacturing in Ireland.

Granted, not huge, but putting a hold on state sponsored Chinese EVs flooding the market and decimating the European automotive industry, all cheered on by the Greens is a good thing in the long run. Do you want a situation where you can ONLY buy a Chinese EV?

7% of the EU's GDP, and 14 million jobs come from the automotive industry.

Not necessarily. What happens in 20 year time when there are no European OEMs' left due to the Chinese government subsidising EVs?

Will be interesting to see what the UKs response to this is. Industry talks is that they may need to follow EUs lead. Conversely, other views are that it could take a different approach in order to attract further Chinese investment in UK.

May well become an Election issue I suspect.

it would still depend if they are receiving illegal state aid.

And more tariffs will subsequently applied if there's an increase in state aid.

What do you think would happen if EU manufacturers were shut out of the market if Chinese manufacturers dominated? They'd hardly keep their prices artificially low if they had no competition.