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Rated Chinese carmakers to brace EU’s increased tariffs on EVs
The new tariffs, reaching up to 38.1%, will take effect next month, adding to the existing 10% rate.
Chinese automakers are poised to withstand the impact of the European Union's provisional tariffs on battery electric vehicles (BEVs), S&P Global Ratings reported.
The new tariffs, reaching up to 38.1%, will take effect next month, adding to the existing 10% rate.
"This move will likely curb the growth in China's BEV export to Europe. Such sales jumped by over 30% last year, and BEVs imported from China contributed to over 20% of total BEV sales in Europe in 2023," S&P Global Ratings credit analyst Stephen Chan said.
"However, the overall impact is limited as China-made BEVs exported to Europe contributed less than 10% of the country's total auto exports last year."
The tariff hike was intended to protect the emerging BEV market in Europe from the competition posed by Chinese manufacturers. Although the new tariffs are substantial, they are less severe compared to the 100% tariffs imposed by the United States in May 2024.
The provisional tariffs will vary among different automakers and are set to be implemented on July 4, 2024.
