Danger of Chinese Electric Vehicle Tax in Europe
The European Union's plan to impose additional taxes on electric vehicles imported from China may leave the European automotive industry in a difficult situation. European automakers and suppliers are concerned about the deterioration of trade relations with China.
Chinese Electric Vehicle Incentives Disturb Europe
The European Commission has begun investigating the state aid provided by the Chinese government to electric vehicle manufacturers. It is claimed that these incentives give Chinese brands an unfair competitive advantage in the European market.
For consumers in Europe, cheaper electric vehicles from China may seem attractive. However, this could jeopardize Europe's own electric vehicle production. European automakers face the risk of losing competitiveness in both the Chinese market and the global market.
European Suppliers Cooperate with China
CLEPA, Europe's largest automotive supplier lobby, warns that the start of a trade war with China could harm European companies. CLEPA Executive Director Benjamin Krieger says China is an important partner in the electric vehicle industry.
According to Krieger, major European brands such as BMW and Mercedes-Benz are exporting vehicles to China and establishing assembly facilities there. Same zamCurrently, China's domestic electric vehicle manufacturers are also purchasing parts from European suppliers, and these suppliers are opening factories in China.
Krieger said, “Many European technologies are used in electric vehicles in China. European suppliers have attractive offers worldwide. "However, these cooperations may be damaged if a tax is imposed on electric vehicles imported from China."
Electric Vehicle Cost Challenges Europe
If the European Commission's investigation decides to impose a tax on electric vehicles coming from China, this could increase the cost of electric vehicles for European consumers. Electric vehicle prices are already at high levels in Europe.
European automakers are trying to offer electric vehicles at more affordable prices, but they have not yet been successful. Only Citroen has an electric vehicle available for under 25 thousand euros.