The Chinese government has reportedly advised domestic automakers to temporarily halt expansion efforts in Europe due to the European Union’s planned import tariffs on electric vehicles (EVs) made in China.
Sources close to the matter indicate that automakers have been encouraged to delay seeking European production sites and refrain from signing new agreements, while adopting a low-profile stance as Beijing negotiates with the EU on the tariff issue.
The guidance, described as non-mandatory, comes after the European Commission announced plans to raise tariffs on Chinese-made EVs by up to 45%, on top of the existing 10% rate, following support from EU member states earlier this month. Some companies, including BYD, Geely, SAIC, and Tesla, have received individual, typically lower, tariff rates.
Several Chinese automakers had been actively exploring European expansion. BYD, China’s leading EV manufacturer, recently signed a distribution Memorandum of Understanding with Ayvens and has been reportedly eyeing Hedin Electric Mobility, a car distributor in Germany.
Meanwhile, Geely has considered local production options, scouting for a European facility. Leapmotor has adopted a collaborative approach, partnering with Stellantis to manufacture its T03 compact EV at Stellantis’ plant in Poland.
The latest developments could intensify trade tensions between China and the EU as both sides continue talks on balancing competition and market access in the rapidly expanding EV market.
Source: Bloomberg
