On August 20, Brussels announced that it would significantly increase customs duties on electric vehicles from China. A decision that will favor manufacturers that cooperate with Europe or invest on our soil. Pure protectionism in short.
Until now, customs duties on a Chinese vehicle were 10%. Starting this fall, a brand like MG Motor, which belongs to a Chinese group, will pay up to 46% in taxes.
If we take the example of one of the best-selling models in France, the electric MG4, it is currently 24,990 euros. Starting this fall, it will cost 30,000 euros, a price that is close to that of European brands. It should be remembered that in the United States, vehicles are taxed at 100%.
The trauma of photovoltaic panels
Manufacturers like BYD will be taxed less because they agree to cooperate with European manufacturers, or even invest by opening factories in Europe. The best example is Tesla, it is not Chinese, but Elon Musk’s brand manufactures its Model 3 in Shanghai and it receives practically no subsidies from the Chinese state. At the same time, Tesla has also opened a factory in Germany for its Model Y SUV. For cars imported from Shanghai, Tesla will only pay 19% in taxes.
The goal is to avoid reliving the trauma of photovoltaic panels. Twenty years ago, the old continent had very good manufacturers, but Chinese producers arrived with products at knockdown prices. They absorbed the entire market. The Europeans had promoted solar panels and were ultimately eclipsed, which led to bankruptcies and factory closures.
It should be noted that competition from Chinese electric vehicles represents a real danger for the French automobile market. In 2035, Europe has decided to ban the sale of new thermal cars, the sector in which we are at the forefront. At the same time, Brussels has imposed electric models on which the Chinese have a technological lead and lower prices.
The showdown with China is underway
In 2024, Chinese electric models already represent 22% of sales in Europe. It was 3% three years ago. On the entire global market for new registrations, they weigh 8%. On the other hand, the automobile industry in Europe employs 12 million people.
In response to the protectionist measures announced by Europe, China is threatening to overtax European cars. The Germans, first and foremost, are extremely unhappy: they sell a lot of Mercedes, Audi, BMW and Volkswagen there. On the French side, manufacturers would be less bothered.
In the past, Europeans reduced the price gap with Chinese models by distributing ecological bonuses to local manufacturers. Now, states no longer have the means for such policies, so they increase the price of Chinese models to protect our market.
This article is originally published on .rtl.fr
