China’s SAIC Motor (600104.SS) announced plans to file a lawsuit at the European Union’s Court of Justice after the EU imposed tariffs of up to 45.3% on Chinese-built electric vehicles (EVs).
The European Commission argues that these tariffs are needed to offset subsidies it claims give Chinese EV makers an unfair advantage, citing favorable financing, land allocations, and reduced raw material costs as factors.
SAIC contends the EU’s investigation was flawed, saying it “wrong in determining subsidies” and had “inflated subsidy rates” by disregarding critical information provided by the company.
In response to the trade barriers, SAIC said it will step up efforts to introduce new EV models in Europe with varied powertrain options, adjusting its strategy to maintain a foothold in the market.
The Commission argues the tariffs address an oversupply of Chinese EVs, which has led to a significant influx into Europe, now the primary destination due to high tariffs in the United States and Canada.
Source: Reuters
