SAIC Motor, Geely, and BYD Face EU EV Tariffs Amid Negotiation Concerns
Collective Bargaining vs. Separate Deals
SAIC Motor and Geely have firmly stated that they have not engaged in separate negotiations to bypass the European Union's import tariffs recently imposed on electric vehicles (EVs). This collective approach reflects their strategy to confront the 35.3% tariff for SAIC and 18.8% for Geely.
The Role of Mofcom
- The Ministry of Commerce (Mofcom) has reiterated its stance on collective negotiations.
- It warned that any separate discussions could harm trust.
- This stance aligns with the China Chamber of Commerce's representation.
Impact of EU Tariffs on Chinese EV Market
The EU's recent decision to levy tariffs on Chinese-made EVs has sent ripples through the automotive industry. Geely's claim of slander against accusations of pursuing individual deals demonstrates the intense pressure companies are under to present a united front.
Market Responses
- David Zhang highlights the potential for increased trade tensions between China and the EU.
- BYD faces an impending 17% tariff under the new regulations.
- Tesla benefits from a lower duty of 7.8% due to its Gigafactory in Shanghai.
The EU's tariff vote passed with a narrow margin, indicating a divided stance on the issue. As negotiations unfold, the Chinese automotive sector remains on high alert, striving to maintain its foothold in the rapidly evolving European market.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.