While additional customs duties will apply to cars produced in China and imported into Europe, here are some duels between affected models from MG, BYD or even Smart and their European competitors.
Europe is stepping up its protectionist game. The European Commission announced on June 12 the implementation of temporary customs duties targeting imports of cars produced in China from July 5.
A way for EU countries to compensate for the subsidies received by these manufacturers in China, as highlighted by a Commission investigation launched last year.
A second shock after the end of the bonus
However, it is still difficult to anticipate the effects of these additional taxes on the prices of the manufacturers concerned (with surcharges ranging from 17.4% for BYD to 38.1% for MG). These customs duties apply on an undisclosed price, between leaving the factory and the distribution of vehicles in Europe and certain brands could cut back on their margins to limit the increase in prices.
This new customs regime will apply from July 5 on new arrivals of vehicles and not sweat stocks, which should also allow the brands concerned to smooth out these potential price increases over time.
“Made in China” models which are no longer eligible for the ecological bonus in France this year.
“After the loss of the ecological bonus for vehicles produced in China, this decision to increase customs duties will reinforce the price differences with European models which, for their part, remain eligible for the main purchasing aid in France for individuals”, underlines Solal Botbol, co-founder of Beev, a company specializing in the transition to electric mobility.
In this context, here are some duels between models produced in China and their competitors “made in Europe”. For each vehicle, we took the basic version, with performances (autonomy, performance) which can therefore vary, the logic being to target the floor price for these cars.
For the model manufactured in Europe, the price is displayed after deduction of the French ecological bonus of 4,000 euros. This gap therefore turns out to be less significant for companies which do not benefit from the ecological bonus.
• Dacia Spring vs Citroën ë-C3
Dacia Spring (currently from 18,990 euros)
Released from the Dacia catalog just after losing its eligibility for the ecological bonus, the little Spring returns this year in a modernized version. The Renault group has not yet reacted to the increase in customs duties announced by Europe.
The Spring is priced at a starting price of 18,990 euros, to see if Dacia will be able to use its margin to reduce this price, or consider relocating production to Europe or the Maghreb.
Citroën ë-C3 (from 19,300 euros)
This potential increase in the price of the Spring could well do business for the Citroën ë-C3. The versatile city car from the French brand is certainly more expensive, but with superior features. And the price difference is already reduced with the ecological bonus which allows the entry-level “You” version to be priced from 19,300 euros.
• MG4 vs Renault Mégane E-Tech
MG4 (currently from 24,990 euros)
With its very attractive quality-price ratio, the MG4 enjoyed great success in France last year, ranking 6th best-selling electric cars in France.
But the end of eligibility for the ecological bonus marked a halt in this commercial dynamic: the MG4 fell out of the top 10 bestsellers last April.
It is currently offered from 24,990 euros, thanks to a promotion which maintains its price with the level of the 2023 bonus of 5,000 euros from which it benefited. It is not certain that this discount will continue with the new customs duties, which increase from 10% to almost 50% from July 5. MG in fact received the highest provisional duties, at 38.1%.
Renault Mégane E-Tech (from 30,000 euros)
Seventh best electric seller in France last year behind a certain MG4, the Renault Mégane E-Tech could well take its revenge this year.
The compact “made in France” currently starts at 30,000 euros, with prices falling since the launch of the new Scénic, also converted to 100% electric.
Barely shorter than the MG4, at 4.2 meters, the Mégane could therefore benefit from this price increase from one of its main competitors.
• BYD Seal U vs. Tesla Model Y
BYD Seal U (currently from 41,890 euros)
An SUV version of the Seal sedan, the Seal U was launched in France at the start of the year by the Chinese giant BYD, world number 2 in electric vehicles behind Tesla.
At 4.78 meters long, the Seal U is barely longer than a Tesla Model Y, its designated target on the French market.
At the entry level, the BYD SUV has a 71.8kWh battery offering 420 kilometers of official autonomy, a little less than the Model Y (455 kilometers in Propulsion version).
With prices currently starting at 41,890 euros, the price increase should be limited for this model, with provisional customs duties of 17.8% for which BYD is subject.
Tesla Model Y (from 40,990 euros)
Produced in the Tesla factory in Berlin, the Model Y can still benefit from the ecological bonus in France in 2024.
A significant advantage for the superstar SUV, the best-selling model in the world for all engines last year. This allows it, for example, to display a final price of 40,990 euros for the Propulsion version (455 kilometers of autonomy), after deduction of the bonus, lower than the BYD Seal U.
Tesla has also just launched a “High Autonomy Propulsion” version (understand, the Model Y with a larger battery, but still a single motor at the rear), with 600 kilometers of autonomy and a price right under the ceiling of the bonus, at 46,990 euros.
• Smart #1 vs BMW iX1
Smart #1 (from 33,815 euros)
Relaunched by the joint venture between Mercedes-Benz and the Chinese group Geely, Smart now produces its models in China. New vehicles that have little in common with the micro-city cars well known in Europe.
Smart now offers 100% electric SUVs, #1 and its SUV coupe version, #3.
Deprived of the ecological bonus, the Smart #1 is currently sold from 33,815 euros with 310 km of autonomy thanks to a 49kWh battery.
The #1 with the 66kWh battery (which offers a little over 400 kilometers of autonomy) is offered from the Pure+ finish for 38,815 euros.
Geely received provisional customs duties at an intermediate level, at 20%, between BYD’s 17.4% and MG’s 38.1%.
BMW iX1 (from 42,990 euros)
The entry-level version of the BMW iX1 currently starts just under the ecological bonus ceiling, dropping its price from 46,990 euros to just under 43,000 euros.
With a 66.5kWh battery, the range is announced at 474 kilometers. This is therefore more than #1 in the Pure + version which announces up to 440 kilometers on a single charge.
Another important difference is the size: the Smart #1 is 4.27 meters long, compared to 4.50 meters for the iX1.
• Tesla Model 3 vs BMW i4
Tesla Model 3 (from 39,990 euros)
If the Model Y is produced in Europe, this is not (yet) the case for the Model 3. Imported from the Tesla factory in Shanghai, the sedan is also affected by the increase in customs duties, with a surcharge provisional at 21%.
A second hard blow after the loss of the bonus, which places the Model 3 only 1,000 euros from the Model Y, with prices starting at 39,990 euros. The sedan benefited from a major restyling last year, which can also explain this reduced gap with the SUV launched in 2020. On this Propulsion version, Tesla announces a range of 513 kilometers.
BMW i4 (from 43,000 euros)
Launched in 2021 and restyled this year, the BMW i4 is establishing itself as a premium competitor for the Tesla Model 3.
Its prices, from 57,750 euros, however, exceed the ceiling of the ecological bonus. But, in France, BMW grants a generous discount of more than 10,000 euros, allowing you to benefit from the bonus. Enough to reach a final price for a particular customer of around 43,000 euros.
The implementation of temporary customs duties on the Tesla Model 3, in particular the Performance versions which start at 55,990 euros, could thus strengthen the appeal of the German sedan-coupe.
In the entry-level eDrive35 version (propulsion and battery, the i4 announces 286 horsepower and a 0 to 100 km/h in 6 seconds (far from the 3.1 seconds of a Tesla Model 3 Performance) and a range of 493 kilometers (528 kilometers for its competitor).
The i4 eDrive40 (still in propulsion, but with an 84kWh battery) announces 586 kilometers of autonomy, but at more than 67,000 euros.
