As you know, negotiations are currently going well between the European Union and China. Like those in the United States, the politicians of the Old Continent no longer agree to let Chinese automobile brands import their electric cars to us to offer them to unbeatable pricethanks to extremely strong aid policies in their country of origin.
After studies begun last year on the subject, the European Commission noted that the Chinese automobile industry was thus engaging in form of unfair competition compared to local actors, who do not benefit from such advantageous protectionism from their respective governments. It has therefore decided to establish a system of specific customs taxes for electric cars imported from China, with tailor-made scales depending on the brands concerned and the quality of their cooperation with its investigators.
BYD, this Chinese giant which hopes to sell its electric cars throughout Europe, thus receives 17,4% additional taxation on its products imported to the Old Continent. Geely, another Chinese automobile giant, gets away with 20% additional taxation. SAIC, which we know well at home for its famous electric MGs at knockdown prices, is taking itself completely 38,1% customs tax. We are talking on average of 21% for other brands, including European and American ones which manufacture their models in China. Dacia for the Spring for example, or Tesla and its Model 3. These models, already hit by the removal of the ecological bonus in France, obviously risk suffering even more.
Huge consequences on the price of these electric cars
Certainly, these additional customs taxes should probably not be calculated in relation to the final price including tax visible on the technical sheet of the cars in our dealerships. But the increase in prices of electric cars manufactured in China and imported into Europe appears dizzying on paper.
By taking as a basis the French price including tax of the models concerned (i.e. probably not exactly the figures which should really serve as a basis for these calculations) then adding the customs taxes in the proportions communicated by the European Commission, we arrive at cars at the competitiveness totally scuttled.
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A Dacia Spring? More than €22,000 in base price while it currently starts at €18,900. A Tesla Model 3? More than €54,000 in its basic version, instead of the current €39,990. The latest Mini Aceman, made in China? More than €42,000 instead of €36,000. No better for the three-door Mini, increased to €41,000 instead of €34,000. Rather competitive in its French base price (€46,990), the Cupra Tavascan would rise to more than €55,000. The MG4, this compact which impressed everyone upon its arrival with its unbeatable price-performance ratio, would end up at more than €40,000 instead of €29,990!
It happens in July. Unless…
These electric cars manufactured in China and then imported, Chinese brands or not, would all find themselves almost unsaleable here with such high taxes. But be careful, these measures have not yet been definitively validated within the European Commission. Knowing that BMW and Volkswagen are among the car brands that now manufacture some of their electric cars in China, the Germans are currently trying to lobby to fight against these taxes. China is also doing this by threatening taxes on the importation of many products from Europe. Until the implementation of these taxes planned for July 4 in the countries of the Union, there is probably still a risk of some developments. Potentially in any case, the European electric automobile market will be completely turned upside down if new stars like the MG4 suddenly become so expensive!
