Some electric cars could cost more, starting July 4. On Wednesday June 12, the European Union announced that it would apply surcharges to certain models imported from China, even though they were already taxed at 10%. The measure aims to favor European manufacturers who, for some, are now making the effort to manufacture electric cars on the Old Continent.
According to automotive industry experts, cited in particular by the New York Times, this increase in taxes on Chinese electric cars risks hitting the consumer’s wallet, “hurting them more than the Chinese manufacturers“.
However, it has not been established that all customs duties are reflected in the sales price. However, for all models produced by BYD, the increase will be 17.4%. The European Union also announces increases of 20% for cars produced by the Geely group, and up to 38.1% for those of the Shanghai Automotive Industry Corporation (SAIC) group.
European manufacturers will also be affected
It is therefore difficult, for the moment, to imagine what price increase will be. By simply applying the additional customs duties to the value of the vehicles, we deduce that a BYD Dolphin – the small model of the Chinese automobile giant – should now cost around €39,815, compared to €33,990 before taxation. A Seal, the brand’s flagship sedan which competes with the Tesla Model 3, should cost approximately €51,170, compared to €46,990 without taxes.
Even American or European brands should be affected. Tesla, for example, has relocated part of the production of Model 3 and Y to China. These cars should therefore be subject to 21% taxation upon their arrival in the European Union. The manufacturer warned, on its site, indicating that “Model 3 price expected to increase starting July 1, 2024 due to potential import tax increases“. So much so that the purchase price of a Model 3 could increase from €39,990 to around €48,890.
Same for Dacia. The Romanian manufacturer affiliated with the Renault group produces the Spring in China, a small electric city car which has already been excluded from the ecological bonus system in France. Available from €18,900 at the time of writing, it could see its price jump to around €22,870. And become less attractive, of course.
Among European manufacturers, we must also expect price increases at Smart, whose new electric SUVs are all manufactured in the Middle Kingdom. From €33,815, the Smart #1 risks seeing its price reach more than €40,900. Costing €37,315, the Smart #3 could see its price reach €45,150. Finally, the new electric Mini Cooper could cost at least €41,140, instead of the €34,000 initially claimed by its manufacturer, the BMW group.
MGs hit hard
As for Geely, the name of this Chinese industrialist may not mean anything to you, but the company owns European manufacturers, such as Volvo and its subsidiary Polestar. According to information from the British daily The Times, the Swedish firm plans to relocate its production from China to Belgium, precisely in order to avoid new taxes. In particular that of the EX30 and EX90, new electric models in which the manufacturer places hope. Especially since the EX30 is one of its most affordable models, with a price of €39,100 in France. If it were overtaxed by 20%, its price could rise to €46,920.
But the most taxed cars should, without a doubt, be those from the manufacturer MG Motor. Historically British, it came under the control of the Chinese group SAIC, and relocated its production to China in the mid-2010s. Unless the factories return to Europe, MG’s rather affordable electric cars should suffer a sharp increase in their price, given that SAIC will suffer a surcharge of 38.1%. The MG4, the compact that the brand sells the most in France, risks seeing its price increase from €29,990 to €41,416.
However, it is not certain that these increases will be applied on July 4. Final duties will be imposed within four months of this date. This gives the Chinese authorities time to negotiate with Brussels. And undoubtedly prevent exports of their cars to Europe from falling drastically.
