All electric cars made in China affected by duties

Let's find out which Chinese (and other) battery-powered cars may soon bear the new European list price duties

By: Fabio Gemelli

Jun 14, 2024 at 4:38am ET

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The announced arrival of new duties imposed by the European Commission on imports of Chinese electric cars will come into force on 4 July, even retroactively if a different agreement is not reached by 2 November between the Brussels authorities and the Asian government and manufacturers.

Europe's proposal is to add to the current 10% tax an additional duty on battery-powered cars imported from China, ranging from a minimum of 17.4% to a maximum of 38.1%.

This means that some Chinese EVs sold in the Old Continent may have to pay a total duty of up to 48.1 per cent, forcing manufacturers to raise prices by an as yet undetermined amount.

Tesla: the first price increases
Different groups, different duties
How much will prices rise?
BYD
Geely
SAIC
Aiways, BMW Brilliance Automotive, Chery, FAW, Dongfeng, Great Wall, Leapmotor, Nio, Tesla, Xpeng
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Tesla already announces first price increases due to duties

The first carmaker to confirm this is Tesla, which is talking about a possible price increase for its Model 3, most of which is produced in the Shanghai gigafactory for Europe, from 1 July 2024, 'due to expected import duties'.

Tesla Model 3

But what are the other Made in China models already sold in Europe that could soon experience significant price increases? Let's find out together.

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Different duties for different groups

At the moment, the European Commission plans to tax the different Chinese groups and their electric cars differently on the basis of the state aid already received at home and the level of cooperation during the investigation phase initiated before the proposal of the new 2024 duties.

Thus, there are groups such as BYD, which is preparing to face an additional 17.4 per cent duty, and Geely, which is seeing the European tax increase by 20 per cent, while SAIC, known in Europe for its MG brand, is facing a 38.1 per cent levy.

By how much will prices rise?

With the data available to date and pending confirmation and possible changes by 2 November, it is not easy to know by how much Chinese electric car prices will really rise.

Indeed, it is not possible at the moment to know if and which Chinese manufacturers will decide to pass on the additional cost of the new duties to the final price of their cars and to what extent. List price increases in the order of 20% and more are, however, possible and conceivable in the coming months.

BYD Group (17.4%)

Here then, the new lowest duty is expected to be paid by the BYD Group, a +17.4 per cent increase that would be partly reflected in the price of the numerous electric cars already sold in Europe and on the way.

BYD ATTO 3

BYD Dolphin

These include the compact Atto 3 and Dolphin, but also the Han and Seal saloons, as well as the Tang and Seal U SUVs.

BYD Seal

BYD Seal U

Also not to be forgotten are the planned arrivals in Europe of the Denza brand with the Denza 9 MPV and the sporty Denza Z9 GT, the Fangchengbao Bao 5 and the super sporty Yangwang U9, all of which are in the crosshairs of the new duties.

Geely Group (20.0%)

Another Chinese group that is set to face the 'salty' duty increase in Europe (20.0%) is the Geely Group, the one that also includes smart, Volvo, Polestar, Lotus and Lynk & Co. among other brands.

Volvo EX30

smart #1

The bulk of electric imports into Europe, however, is currently represented by the Volvo EX30, but also by the smart #1 and smart #3, the Polestar 2, the Zeekr 001 and Zeekr X and the Lotus Eletre.

Polestar 2

Lotus Eletre

Other models coming to Europe such as the Volvo EX90, the Polestar 3 and Polestar 4 and the Lotus Emeya will also be affected by the upcoming price increases due to the new duties.

SAIC Group (38.1%)

The group most affected by the new European import duties is also the largest of the Chinese giants, SAIC Motor, which is now present here under the MG brand and is preparing to pay an additional 38.1% tax.

MG4

MG Marvel R

Thus, in view of price increases from July are battery-powered models such as the compact MG4, the MG5 estate and the Marvel R and MG ZS EV SUVs, not forgetting the upcoming Cyberster.

Small sales numbers are also being achieved by the electric MPVs Mifa 9 and Maxus Euniq 5, other price candidates.

Aiways, BMW Brilliance Automotive, Chery, FAW, Dongfeng, Great Wall, Leapmotor, Nio, Tesla, Xpeng (21.0%)

Those who will face an additional tax of 21.0% are other groups that participated in the European Commission's investigation on duties such as Aiways, BMW Brilliance Automotive, Chery, FAW, Dongfeng, Great Wall, Leapmotor, Nio, Tesla and Xpeng.

Remember that Aiways already sells the U5 in Europe, while BMW markets the iX3 and Chery offers a couple of models under different brand names, including the Omoda E5.

BMW iX3

Omoda E5

FAW is currently in Europe with the large electric SUV Hongqi E-HS9 and Dongfeng offers the Forthing Friday EV and the Voyah Free, as well as the Dacia Spring made with Renault. GWM sells the Ora 03 here.

Dacia Spring

Leapmotor T03

Leapmotor already sells the small T03 in some European countries and is preparing to import the C10, which may soon be produced in Europe, while NIO, another candidate for the additional 21% duty, offers the EL6, EL7, ES8, ET5 and ET7 battery SUVs.

Nio EL6

Xpeng G9

Tesla, on the other hand, produces in China the aforementioned Model 3 for the European market and probably a small part of the Model Y, with Xpeng selling the G9 and P7 models in the Old Continent.

Others (38.1%)

Other, unspecified Chinese electric car makers will instead have to pay a 38.1% duty on models built in Asia and imported to Europe. These could include EVs produced in China and sold in Europe by other groups such as JAC or Yudo, as well as some 'unsuspected' Chinese electrics with European branding.

These include the new Cupra Tavascan produced in China by Volkswagen and JAC, while it is unclear whether the new electric MINI Cooper built at Zhangjiagang by BMW and Great Wall Motor falls under the previous agreement with 21.0% duty.

Cupra Tavascan

MINI Cooper SE (2024)

DR 1.0

A veil of uncertainty also shrouds the possible series of new European duties that could hit those electric cars built in European countries on the basis of Chinese models, such as the Italian DR 1.0 that originates from the Chery eQ1.

For these, the rules on determining the origin of products indicated by the European Commission itself should apply, according to which the country of production is that in which at least 45% of the car's added value is formed (here is the Commission's PDF).