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

MacronvFrugals

Mod Note: Thread bans, mad_lad

It seems to be happening very quickly, wonder how that will affect people awaiting deliveries

The European Commission is to notify carmakers on Wednesday that it will provisionally apply additional duties of up to 25 per cent on imported Chinese EVs from next month, according to people familiar with the decision. Brussels argues that Chinese EV makers benefit from subsidies that undercut their European rivals.

https://www.ft.com/content/0545ed62-c4b9-4e8a-80fa-c9f808e18385

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wassie

https://www.boards.ie/discussion/comment/122252223#Comment_122252223

Unlikely. BYD is in the top 10 car makers globally and the biggest EV maker. They arent going anywhere soon.

As @Gumbo posted earlier, BYD are currently building a factory in Hungary. Recent reports also state they are looking for a location for a potential second factory.

https://uk.finance.yahoo.com/news/byd-says-build-second-eu-142855980.html

Danzy

We are effectively in a cold war with China and they'll keep coming for us all.

Whether that be helping Russia continue fighting in Ukraine, helping Iran keep the middle east aflame and on and on.

Padre_Pio

I wonder how China will respond. It's no secret BMW, Audi and VW make billions from the Chinese market and have partnerships with Chinese auto makers. Sure the top end BMWs are designed more for the Asian market than European at this stage.

This could be a double edge sword.

MacronvFrugals

So tariffs on SAIC are 38% but this doesn't include the below existing 10% tariff, so an MG will be nearly 50% more expensive

The duties will be applied on top of existing 10 per cent tariffs on all Chinese EVs

Hurrache

https://www.boards.ie/discussion/comment/122252208#Comment_122252208

They'd hardly avail of state aid now would they in order to manipulate the market? 😀

k123456

I would not be surprised if BYD ceases all sales in Ireland, they have 3 or 4 garages / dealers here , hardly worth the effort , if price increases and lower sales are imminent

ted1

https://www.boards.ie/discussion/comment/122252022#Comment_122252022

you haven’t explained how they’ll just keep

Lowering the prices. ……

Hurrache

Like I said, they can reduce their prices as low as they want but tariffs will negate them.

And I shouldn't have to point it out, we are the EU.

AMKC

No it's not. As I said in my last post the Chinese will just price there cars even lower coming here so these tariffs will be meaningless to the price of Chinese vehicles coming here. They can afford to do that. The Chinese cars will still be cheaper than any from the European Legacy makers and they will continue to suffer while the Chinese benefit. But sure The EU will make some money from it now too so all good.

Hurrache

https://www.boards.ie/discussion/comment/122251992#Comment_122251992

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.

ted1

How will they reduce the price ? If it’s by more state support tariffs will Increase

ted1

https://www.boards.ie/discussion/comment/122251858#Comment_122251858

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

AMKC

Stupid decision by the EU this is. The Chinese will just reduce the price of there cars even more and still sell them cheaper than the European Legacy makers and all the other Legacy makes too. It will just make things worse for these Legacy makes. In the meantime do the EU will be making a nice pocket out of it.

wassie

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.

https://archive.ph/Av0Om

May well become an Election issue I suspect.

cunnifferous

This is short term pain for long term gain. We can't have the consolidation of all EV manufacturing in one country, especially one that is as prickly as China. That's where this is eventually going if nothing changes

BYD opening factory in Hungary. I presume these will be tariff free.

kirving

https://www.boards.ie/discussion/comment/122250569#Comment_122250569

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.

https://www.boards.ie/discussion/comment/122250969#Comment_122250969

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

3d4life

GP3UOyBXkAAaDrX.thumb.jpeg.0a486152a7957ab6623f16b89e4e6abc.jpeg

…

https://aseannow.com/topic/1257405-electric-vehicles-in-thailand/?do=findComment&comment=18986557

54and56

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?

frank730

https://www.boards.ie/discussion/comment/122250513#Comment_122250513

how is this good news? this just means there will be no cheaper options for EVs

wassie

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.

Exiled Rebel

We only just re-started selling beef last year (I know I know that's paused for the time being). It, along with powdered milk, are two vital exports to china to our farming community.

The pressure from the farming and food industry (e.g. Dairygold) on the government to vote against the tariffs will be enormous.

liamog

https://www.boards.ie/discussion/comment/122250341#Comment_122250341

German manufacturers were the main ones pushing against it, the new Mini Cooper and Aceman are both manufactured in China and will be subject to the new tariff.

Stallingrad

https://www.boards.ie/discussion/comment/122250569#Comment_122250569

I'm not saying it's good news for Ireland or consumers in general, I'm saying it's good news for European car manufacturers and for the countless people that are employed by them.

wassie

https://www.boards.ie/discussion/comment/122249585#Comment_122249585

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.

https://www.abc.net.au/news/2024-05-31/chinese-cars-third-most-popular-in-australia/103909144

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.

pad199207

https://www.boards.ie/discussion/comment/122250513#Comment_122250513

Absolutely.

MrMusician18

https://www.boards.ie/discussion/comment/122250513#Comment_122250513

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.

Stallingrad

This is good news. European car manufacturers could be decimated by subsidised Chinese EV's, we just can't compete with them on price in the West. Of course not great for consumers, but it may mean hundreds and thousands of jobs saved, and legacy manufacturers can battle on.

There are plenty of other EV's to choose from.

MrMusician18

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.

Casati

No doubt non Chinese manufacturers will increase the price of their EV’s by a similar percentage to maximise profits

Gumbo

…..