Jaan Juurikas’ Post

Volvo Could Import EX30 From Belgium To The U.S. The Swedish auto giant currently manufactures the EX30 in Zhangjiakou, China but the EU and the U.S. are planning tariffs on China-made EVs. Volvo is planning to import the EX30 EV from Belgium to the U.S. to bypass the stringent tariffs on China-made EVs. The announcements of tariffs by the EU and the U.S. have shaken up the automobile industry in the last few months. Carmakers and industry experts have varied opinions about these steps. The underlying reason for these tariffs is the fear of mega-affordable Chinese EVs flooding the international markets and killing the competition. https://lnkd.in/gR53_e56

China calls on EU to rethink BEV tariffs 💲 The European Union’s (EU) decision earlier this month to hike import tariffs on Chinese made battery electric vehicles (BEVs) by up to 38% has rattled the Chinese automotive industry, both domestic manufacturers and foreign joint ventures, with many companies calling for retaliatory duties to be imposed on European imports. A meeting was hosted in Beijing last week by China's Ministry of Commerce to discuss the EU’s decision with the country’s leading domestic automakers which is understood to have included SAIC Motor, BAIC Group(Beijing Automotive Group CO.,Ltd) and BYD Auto as well as with representatives of foreign automakers such as BMW Group and Volkswagen. The higher EU import tariffs are scheduled to go into effect on 5 July, after the European Commission (EC) claimed that Chinese BEV manufacturers have unfairly benefited from substantial government incentives for over a decade. An investigation launched last October by the EC found that government subsidies were pervasive throughout China’s entire BEV production process, from the production of raw materials for battery cells through to vehicle manufacturing and shipping, with batteries often supplied “at below market prices”. Data released by the European Automobile Manufacturers' Association (ACEA) shows that a total of 438,034 BEVs were imported by the EU from China in 2023, valued at EUR9.7bn, while the EU exported just 11,499 BEVs to China worth EUR852m. The Chinese government has so far resisted calls by local automakers to introduce retaliatory measures, hoping to avoid another trade war with a major trading partner. It has called on the EU to cancel its planned import tariffs and choose instead to hold talks with a view to reaching a negotiated settlement. #automotiveindustry #electricvehicles #tariffs

Europe may need to impose tariffs of up to 55% to curb Chinese EV imports: report The European Union will need to levy higher-than-expected tariffs of up to 55% on Chinese electric vehicles to curb their imports into the bloc, according to a new analysis by Rhodium Group. The findings, released Monday, come amid the EU’s ongoing anti-subsidy investigation into EV imports from China.  Rhodium Group, which expects the EU to impose tariffs in the 15% to 30% range on Chinese EVs, said those tariffs were unlikely to be enough to check competition from China. “Even if the duties come in at the higher end of this range, some China-based producers will still be able to generate comfortable profit margins on the cars they export to Europe because of the substantial cost advantages they enjoy,” the report said. Chinese companies such as BYD, which toppled Tesla to become the world’s largest EV manufacturer last year, can sell cars at much higher rates and profit margins in regions such as the EU compared with the domestic market, despite paying a 10% tariff rate. Chinese EV makers are locked in an intense price war in their home market. BYD’s Seal U model, which sells for 20,500 euros in China and 42,000 euros in the EU, generates an estimated profit of 1,300 euros in its home market versus 14,300 euros per car in Europe, Rhodium said. Even after 30% in tariffs, a company like BYD will make a higher profit in the EU, it added. The report said that BYD will likely need to cut prices to meet its goals of gaining more market share in the EU. A 30% tariff rate would still leave enough room to do so. “Much steeper duties of around 45%, or even 55% for fiercely competitive producers like BYD, would probably be necessary to render exports to the European market unappealing on commercial grounds,” the report said. News credit CNBC #news #dailynews #technews #dailynewsupdates #viralnews #trendingnews

I'm not an expert, but different EU import tariff rates for BYD and SAIC Motor seems a bit dodgy. Apparently these rates were, in part, based on the OEMs ability to cooperate with the EU's anti-subsidy probes. The impact is real: 17.4% import tariff for BYD, 38.1% for SAIC. No doubt BMW is feeling the pain now that it's China-made Mini is rumored to also have a 38.1% EU tariff. BMW announced plans in 2019 to make the Mini with JV partner Great Wall Motor. BWM also is making the ix3 with JV partner Brilliance in Dadong. However if BYD (and others) can profitably export to Europe (even with tariffs), the EU is going to need to increase rates if protectionism is the end-game. Or Chinese-made cars will come out on top. This isn't just Chinese vs. EU - the EU's decisions will impact how future automotive supply chains are built, how EU cars will fare in the world's largest car market (if China retaliates), and whether Chinese EVs can continue to gain market share in Europe. As always, pop the popcorn!

We've delved into what the latest updates to EU Tariffs on Chinese-made EVs mean for the industry: Read more in Didi Bostock's article here: https://lnkd.in/eRvq9KUQ #EUTariffs #ChineseEVs #AutomotiveIndustry

The EU is expected to announce additional tariffs on Chinese EVs this week. The question is how the tactics will balance out with a divided #automotive industry and US pressure. Current import levies on #cars of 10% may be tripled, but that probably won't deter Chinese brands from gaining ground in Europe. But it could stir (re)considerations about production locations such as BYD producing EV in Europe and Volvo Group (GEELY) shifting back EV production to Europe. https://lnkd.in/esnH_HAi

With lower-cost Chinese brands like BYD, GEELY and SAIC Motor entering Europe directly or indirectly, German car manufacturers can't compete in the UK with additional import tariffs of 10%. China's critical minerals processing and battery domination make their supply chains 20-30% cheaper than Europe and a challenge for domestic EV manufacturers to ensure 45% EU or UK content by 2024. #electricvehicles #supplychains #tradetariffs #europe

EU tariffs on Chinese-made EVs come into effect on the 5th of July, meaning some vehicles will be subject to tariffs up to 47.6%. This represents a slight reduction of the provisional tariffs announced on the 12th of June. In 2023 just shy of half a million China made EVs were sold in the EU, making up nearly one-third of the total EVs bought. The team at Rho Motion have gone through the details and considered what they mean for the industry. Here are three key points to consider: 1. The tariff only applies to BEVs arriving at EU ports from the 5th of July, meaning that Chinese inventory already imported into Europe under the current 10% tariffs will not be subject to the price rises. Subsequently, consumers may not feel the impact immediately 2. Chinese OEMs have been able to drive down costs, which has in turn, been favourable for their margins. Rho Motion assesses that many Chinese OEMs, even with higher tariffs, will therefore be able to absorb the tariff price rises. 3. Given the tariff is directly targeting BEVs only, this may be an opportunity for Chinese OEMs to shift their export focus to selling PHEVs in Europe Read more here: https://lnkd.in/eRvq9KUQ #EUTariffs #ChineseEVs #EUAutoIndustry #TradeTariffs #GlobalTrade #ElectricVehicles #AutomotiveIndustry

Raising import tariffs on Chinese cars seems likely following the European Commission anti-subsidy probe. However, especially German car makers Mercedes-Benz AG, Volkswagen and BMW Group have significant stakes in the Worlds' largest market well, about to suffer from a looming action-reaction spiral in trade measures. And to be honest, Chinese manufacturers also challenge European car makers to move faster and offer the cars (#evs) consumers are looking for. Find the perspectives for the Chinese car market in our global outlook: https://lnkd.in/etUNQukf #ING https://lnkd.in/e7G7U7zW

The EU Commission's tariffs on imported EVs from China are set to come into effect tomorrow, but they're facing minor alterations and plenty of backlash. The tariffs have been amended slightly, depending on the manufacturer, however the principle of withholding affordable EVs from the majority of Europe is still under intense debate. The tariffs will be in place temporarily until a final agreement can be made by November 5. Find out all about it, and hear from Ian Plummer, Commercial Director at Auto Trader UK, the headline partner for the EV SUMMIT, down below 👇 #ElectricDrives | #Sustainability | #ElectricVehicles | #EV | #Emobility | #EU | #China | #Tariff | #EVImport | #Import | #ImportTariff | #EVSUMMIT Jamie Muir Laura Hardy Laura McNally MBA Bryony Snelling Marc Palmer Andrew Nankervis Rachel Bickler Lucy Yiasoumi Michael Grande Nimisha Jain