Chinese EV pricing under investigation in Europe
European Commission to study case for higher tariffs on Chinese-built electric carsThe European Commission has launched an investigation into the “flood” of Chinese-built electric cars – including EVs from brands such as BMW and Tesla – that are pouring into Europe at low prices stemming from “huge state subsidies”.
In announcing the probe, which could lead to higher tariffs on Chinese-built EVs, European Commission president Ursula von der Leyen is reported by the Reuters news agency as saying: “Global markets are now flooded with cheaper electric cars. And their price is kept artificially low by huge state subsidies.”
The Commission now has 13 months to assess whether the claims are true and decide if it should impose new tariffs above the standard 10 per cent EU rate for cars.
A similar investigation was launched almost a decade ago when similar accusations were levelled at the Chinese solar panel industry.
Chinese brands are obviously in the firing line, but the investigation will also include car-makers such as BMW and Tesla, which produce EVs in China, to see if they’re benefiting from anti-competitive payments from the Chinese government.
Some have already accused von der Leyen as using the investigation, and the tough stance against China, to win support for a second term as president.
Addressing the investigation, the Chinese Chamber of Commerce pleaded for the Commission to look at its electric cars objectively, stressing that its competitive edge was not due to subsidies.
Fuelling the tension within Europe is the rapid expansion of brands such as BYD, Xpeng and NIO.
Chinese EV brands’ market share has rapidly risen to eight per cent in Europe, but analysts have suggested it could reach 15 per cent by 2025 off the back of an aggressive pricing strategy that sees some cars priced around 20 per cent less than EU-produced models.
The introduction of Chinese electric cars has already prompted a reaction from European car-makers like Renault, which has vowed to slash production costs of its EVs by 40 per cent.
Chinese state subsidies of EV and hybrid vehicles was reportedly as high as $US57 billion ($A89b) from 2016-2022.
Earlier this year, NIO founder William Li said that it had a cost advantage over rival Tesla, thanks to its supply chain and low cost of raw materials.
He also warned other Chinese EV makers that they should brace for the introduction of protectionist policies by foreign governments.
For everything you auto know about EVs, listen to carsales' Watts Under the Bonnet: the electric car podcast
Join the conversation at
Or email us at
Or email us at
Please see our Editorial Guidelines & Code of Ethics (including for more information about sponsored content and paid events). The information published on this website is of a general nature only and doesn’t consider your particular circumstances or needs.
