Tesla’s Chinese rivals slammed the proposed European Union tariffs on Chinese-made electric vehicles (EVs) during Paris Car Show. The situation has raised concerns about increased costs for consumers and potential impacts on the automotive market.
What Happened: The European Union’s proposed tariffs on Chinese-made electric vehicles could increase costs and discourage buyers, warned BYD BYDDY BYDDF on Monday. This warning comes as European and Chinese automakers compete at the Paris car show, the largest in Europe, during a time of weak demand and rising costs, Reuters reported.
BYD Executive Vice President Stella Li expressed concerns over the tariffs.
“Europe’s EV market needs more positive education … trust is low. The problem is the high price, and that the European Union now charges tariffs,” Li slammed.
She emphasized that the tariffs could prevent less affluent individuals from purchasing EVs. Nine Chinese brands, including BYD and Leapmotor, are showcasing their latest models at the event, as reported by Paris auto show CEO Serge Gachot.
Earlier this month, EU member states narrowly approved import duties on Chinese-made EVs of up to 45%, aiming to counter alleged unfair subsidies from Beijing. However, China denies these claims and has threatened retaliatory measures. Despite the tariff concerns, Chinese automakers are continuing their European expansion plans, with GAC GNZUF and Leapmotor announcing ambitious sales targets in Europe.
Why It Matters: The European Union’s decision to impose tariffs on Chinese EVs has sparked significant debate. The European Commission announced earlier this month that the tariffs, reaching up to 35.3%, were supported by EU member states. This move aims to address perceived unfair subsidies by China. However, the tariffs have drawn criticism from various quarters, including Spain’s Prime Minister Pedro Sánchez, who urged the EU to reconsider its stance to avoid escalating trade tensions. The ongoing dispute highlights the delicate balance between protecting domestic industries and maintaining international trade relations. As Chinese automakers continue their push into the European market, the outcome of this tariff battle could have lasting implications for the global EV industry.
Read Next:
Image via Shutterstock
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
