Since July 4, 2024, around thirty electric cars produced in Asia have seen their taxes increase. Here is the list.
In the face of fierce competition, European car manufacturers are struggling to compete with their Asian counterparts who offer electric vehicles at attractive prices. Chinese manufacturers have taken advantage of cost-effective production methods to establish a strong foothold in the European market. Brands like MG, BYD, and Seres are gaining popularity for their aggressive pricing and performance value ratio, despite some uneven road performance. This includes models like the BYD Atto3 and the compact Dolphin.
To counter this unfair competition, Europe has decided to impose additional taxes on all electric vehicles coming from Asia. This new tax regime is part of efforts to slow down the impending influx of these vehicles. This involves additional taxes on cars made in Asia and sold in Europe, including those from European manufacturers like Dacia with their Spring model and BMW with the new electric Mini.
As of now, out of the 110 electric cars available in France in 2024, about thirty are subject to additional taxes imposed by the European Union. The impact on final pricing at dealerships is yet to be determined. It is essential to note that all cars made in Asia are being taxed, including those from European manufacturers who have moved their production overseas.
Here is the list of the 30 electric cars whose customs duties officially increased on July 4, 2024, due to their origin. Each brand faces a different surcharge based on their involvement in the investigation carried out by the EU over the subsidies granted by China to its manufacturers.
For now, only fully electric vehicles are affected, sparing models like the Citroën C5-X or the DS 9, which are assembled in Chengdu and Shenzhen, respectively. The additional taxation, while necessary to protect the European industry, may not be enough for Chinese manufacturers who may reduce margins to remain in Europe until they establish production facilities on the continent. BYD is planning to build a manufacturing plant in Hungary, while Chery has acquired the former Nissan facilities in Spain.