Carmakers respond to EU tariffs on Chinese-made EVs
Adds entries on MG and NIO
July 4 (Reuters) -With the European Union imposing extra duties on Chinese-made electric vehicles from Friday, some carmakers have decided on counter measures.
So far only Tesla TSLA.O has announced plans to increase prices, while Chinese brands MG and NIO 9866.HK suggested they might raise prices of their cars in Europe later this year.
Analysts expect other manufacturers producing in China will also pass on part of the extra cost to consumers.
Below is a list of the carmakers' response to the tariffs:
BYD 002594.SZ
The Chinese carmaker, which faces the lowest tariff hike of 17.4% on top of the current 10% duty, has not decided yet whether to hike prices on EVs sold in the European Union, sources close to the company told Reuters.
There would be no decision before July 4, when provisional duties take effect, sources added.
CHERY AUTO CHERY.UL
The Chinese automaker said its planned EV production in Spain, set up through a joint venture with Spain's EV Motors, should help offset tariffs on imports into the EU.
Production at the Barcelona-based site is expected to start by the end of the year, Charlie Zhang, vice president of Chery Auto, said.
The site is not big enough for the carmaker's medium- and long-term plans in Europe, Zhang added, saying the company was looking for a possible second site.
MG
A spokesman for MG, produced by China's SAIC Motor 600104.SS, told Reuters in France that the automaker had enough vehicles in stock "to last until November without increasing prices", referring in particular to the MG4 model.
MG's country manager for Italy, Andrea Bartolomeo, told Reuters that for the moment the brand was not planning any price action on its car line-up in the country.
The EU has imposed a tariff of 37.6% on EVs produced by SAIC.
NIO 9866.HK
The Chinese automaker said it may adjust the price of its cars in Europe as a result of the preliminary tariffs. It added it hoped to reach a resolution with the EU before the measures become definite in November.
NIO is facing a tariff of 20.8% on its EVs.
POLESTAR PSNY.O
After posting a first-quarter operating loss, the Swedish carmaker, owned by China's Geely 0175.HK, said it would need to take "mitigating measures" to offset tariffs and pressure on car prices.
Such steps could include cost reductions across its supply chain, but not further job cuts, a company spokesperson added.
TESLA INC
The carmaker plans to increase the price of its Model 3 to compensate for the higher cost at European borders as a result of the tariffs.
Compiled by Isabel Demetz and Mateusz Dobrzyniewski; Editing by Emelia Sithole-Matarise and Milla Nissi
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
