Chinese companies move to bypass tariffs by building EVs in Europe

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Various Chinese brands are moving to open factories in Europe to avoid tariffs on China-built EVs

China?s electric carmakers are expanding in Europe to blunt the impact of tariffs meant to weaken their price advantage over the region?s ailing legacy manufacturers. With the European Union�hiking duties�on Chinese electric vehicles to as much as 48%, China?s new generation of green car manufacturers is teaming up with local industry so their cars are considered homegrown.�Without these measures, Chinese EVs could become thousands of euros more expensive for consumers, or else unprofitable.

?s MG4 EV�could plunge from 25% to just 1%. Some of this could be avoided if the firm raises prices, or if battery costs continue�to tumble ? another area where Chinese firms are outpacing EU competitors. ?List prices of Chinese-brand models are unlikely to change, as they currently lack the brand equity to justify a price increase,? Matthias Schmidt of Schmidt Automotive Research wrote in a report.� Building plants Manufacturers aren?t waiting around for the full picture on tariffs to emerge.

is in talks with the Spanish government about where to build its first production site in Europe, newspaper Expansion reported on July 12.� Volvo Car AB, the Swedish carmaker owned by Geely, has accelerated plans to build its new EX30 model in an existing plant in Ghent, Belgium, in addition to its factory in China.� This summer, Leapmotor began assembly of the all-electric T03 in Tychy, Poland, at a manufacturing site owned by Stellantis ? just six months after they announced the partnership.

 

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