Leading Chinese car manufacturers say the decision by the EU to raise its tariffs on Chinese imports of electric vehicles will impact their sales. Duties of up to 45 percent over five years will likely have to be passed on to consumers, raising the price of electric or hybrid cars.
These companies are warning this increase may also affect buyers' decisions when choosing an electric car or traditional one.
Earlier in November, CASIC (China Automobile Standards Internationalization Center - Geneva) hosted its second 'CASIC Forum' in Geneva. It was held under the theme of 'Global Automotive Standard Innovation Driven by Low Carbon and Intelligence.'
The forum brought together experts from leading Chinese automotive brands including FAW Group, Dongfeng, Geely, Huawei, CATARC, and others. Representatives of international organisations such as UNECE (United Nations Economic Commission for Europe) and Ito, as well as local governments, also attended the event.
The main agenda was discussing the regulations and standards of the industry, as well as latest trends and challenges such as the EU tariffs.
The forum's chief representative Bao Xiang said: "We cannot ignore this because I think every car manufacturer is concerned about this. But right now the current situation is harmful for both sides - we don't want that to happen."
He said more negotiations between China and the EU would help to prevent price increases affecting consumers.
Manufacturers say tariffs would affect consumer choice for EV cars in the European market. /CFP
Senior chief engineer from Geely Motors, Zhang Xiaodong, said: "If there is no change within five years, then our car sales in the local area will definitely be affected."
The European market is crucial for Chinese car manufacturers. Automobile industry analysts say that imposing EU tariffs on Chinese electric vehicles could, in the short term, affect the price competitiveness for Chinese manufacturers in the European market.
However, in the long run, it should not deter Chinese EV manufacturers from pursuing opportunities in the EU.
The biggest markets for Chinese EVs in Europe are Germany, the UK and France, followed by Norway, Belgium and Italy. Of the 208,872 EVs sold in Europe in June 2024, just over 43,400 were sold in Germany.
In response to the European Commission's raising tariffs, China has requested World Trade Organisation dispute consultations with the EU.
The goal of these consultations is for further discussions in an effort to find a satisfactory solution without proceeding further with tariffs. These negotiations are ongoing.