EU Tariff on Chinese EV Boosts Local Production

[ABS News Service/14.08.2024]

Global sales of fully electric and plug-in hybrid vehicles rose by a yearly 21% in July, thanks to China's strongest growth this year and despite dropping demand in Europe, market research firm Rho Motion said Monday according to a Reuters news service report.

In the European Union MG Motor, owned by China's SAIC Motor Corp, expects to be hit hardest by provisional tariffs imposed on EVs imported from China, Rho Motion data manager Charles Lester told Reuters.

The impact of the tariffs should be smaller on Tesla, which can produce in its Berlin factory, and Chinese EV giant BYD, whose presence in Europe remains small, Lester said.

In Europe, monthly sales were down 7.8% in July, to year-to-date figures in line with 2023. In the seven months to July, they dropped by 12% in Germany, the EU's biggest EV market. In the United States and Canada, EV sales were up 7.1% in July.

The European Union imposed in July provisional tariffs on imports of electric cars made in China. BYD faces duties of 17.4%, Geely 19.9% and SAIC 37.6%, the EU said.