Despite the launch of new import taxes by the EU, the main manufacturers of the People’s Republic have decided not to increase the prices of their models, at least until the end of 2024. What will happen next year? For now the strategy to avoid duties seems to be to move the factories to the Old Continent. European companies that produce some of their models in China are alarmed
The decision of European Commission to pass higher duties on electric vehicles produced in China with the aim of slowing down the advance of Asian brands and protecting producers from the Old Continent could turn into a boomerang. The new taxes applied to cars Made in China they do not seem to scare the giants of the dragon, on the contrary, many brands have decided not to increase the prices of the cars until the end of 2024, but they are increasingly becoming a source of concern for the European manufacturers who, in turn, produce some of their models in the factories of the People’s Republic. The feared “invasion” of Chinese battery-powered cars has not occurred, while sales of electric cars are not taking off due to the high purchase price and constantly growing charging costs. Meanwhile, China has adopted a series of anti-dumping measures on the import of brands from the EU. This is a first commercial retaliation maneuver also extended to European imports of dairy products and pork by submitting a complaint about EU tariffs to the WTO, the World Trade Organization.
MG, Byd e Omoda
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As anticipated, some Chinese car brands have announced that the prices of their models, despite the duties applied by Europe, will not be adjusted upwards. A market choice aimed at sacrificing margins and not share. The Saic group, owner of the former English brand MG, has declared that it does not intend to change its price lists, despite the fact that its electrical products are already subject to the payment of a 10% duty, to which it will soon have to add another 35%. Even BYD will not raise the prices of its electric cars, the same goes for Omoda which confirms the launch of the brand’s first electric car scheduled for mid-November, the Omoda 5with a price that will be around 35,000 euros.
Volvo, Mini and the others
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European brands that produce some of their models in China are worried. The duties passed by the European Union affect anyone who imports electric cars into the Old Continent without distinction, so much so Volvostarting from mid-2025, will shift production to electric EX30 from China to Belgium, while the EX90s will be built in the United States. Also Mini takes action and from 2026 will also produce the electric three-door in Oxford. The production of the Aceman compact crossover remains in Asia, at least for now. Smart will decide what to do based on the EU’s final choices and, currently, the production of models #1 and #3 remains in China.
The Chinese in Europe
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What will happen in 2025? For now there is nothing official, with the Chinese giants potentially deciding to raise the prices of their electric models, but, at least for now, the strategy seems to take other paths into consideration. Some Asian brands are organizing to build their models directly in Europe, thus making the application of new and possible import taxes useless. At the end of 2023, Byd announced the construction of a factory in Hungary, while Dongfeng is in talks with several EU countries, including Italy, to start local production. Great Wall Motor is considering opening a factory in Germany, Hungary or the Czech Republic, while Chery has acquired an old Nissan factory in Spain. Also Saicthe state-owned Chinese brand, is still looking for an assembly site in Europe, a so-called screwdriver factory, while MGthe brand’s flagship brand, has opened its second European spare parts center in France.
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