EU lowers proposed import duties for Chinese cars, which will be voted into law in October if at least 15 of the 27 EU members agree. Tesla gets a big break from the revised rules, with its duty for China-built vehicles dropping from 20.8% to 9%. Even if the new duties have only been enforced provisionally since July 5, they already seem to be affecting Chinese car sales on the continent.
will get the full 36.3%. Vehicles imported into Europe by Volvo owner Geely will incur an additional 19.3%. Bloomberg notes that if a Chinese manufacturer has a joint venture with one from Europe, this will cap the maximum possible duties at 21.3% instead of the full 36.3%. Even though the tariffs have only been adopted provisionally for now, they’re already having an effect on sales.
saw a 45% sales drop in July compared to June, although a 36% drop in all EV sales was observed in the European bloc’s 16 largest markets, so that may have also had an effect. Year-over-year, though, some Chinese manufacturers are still ahead. BYD, for instance, has sold 20% more cars in the EU so far in 2024 than it did over the same period in 2023. However, if it raises prices to counteract the higher duties, the attractiveness of its models for European buyers may start to fade.