Electric Vehicle Trade Wars Expand to Luxury Cars

Investors have long been concerned about the large number of Chinese electric cars coming to Europe. With these new tariffs, Porsches heading to China could face similar taxes.

Europe has made Chinese electric cars more expensive by imposing high taxes and China is not happy with the high taxes as they consider Europe a big market for their car industry. The new taxes range from 17.4% to 38.1% in addition to the existing 10% tax. So, the total tax could be around 50%.

Price war by Chinese EV makers abroad may raise quality concerns: Ban

Bian advised Chinese assemblers to focus on premium models rather than appealing to budget-conscious consumers when building their global image.

Price competition among Chinese electric vehicle (EV) makers abroad is not sustainable, according to Bain & Company, because if cars are discounted every time, consumers will start doubting their quality and reliability.

The global consulting firm recommends that Chinese car makers, whose production costs are already lower than most other international brands, should focus on selling high-end and expensive car models to improve their reputation worldwide rather than trying to catch the minds of people looking for cheap cars.

European Commission’s Inquiry into Chinese Electric Vehicles Deemed Highly Significant

Electric cars made in China will soon have to pay taxes when brought to the EU’s open market. The EU recently saw a big surge in demand for these commuter vehicles.

The European Commission on Wednesday announced the first provisional decision in its anti-subsidy investigation for BEVs made in China, dividing brands according to the suspected level of state aid they received.

  • BYD: 17.4%
  • Geely: 20%
  • SAIC: 38.1%
  • Other BEV producers in China that cooperated in the investigation but have not been individually sampled: 21%
  • Other BEV producers in China that did not cooperate: 38.1%

China makes last-ditch charm offensive to avert trade war with EU

Brussels is expected to inform Chinese carmakers of new duties on electric vehicles only after Sunday’s election.

Just ahead of the European elections, China is trying to convince the EU not to tax electric cars made in China. China says it is ready to talk to the EU, but has warned that taxing these cars could harm the EU economy. The EU is going to tell Chinese electric car manufacturers next week how much tax they may have to pay for receiving unfair government support.

What is the future of EV cars?

According to the protocol, more and more electric cars could be sold than traditional gas-powered cars in the coming years. By 2025, about 20% of new cars sold could be electric. By 2030, that number could rise to 40%. And by 2040, nearly all new cars sold could be electric.

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