The European Commission has decided that electric cars coming from China will face heavier import taxes. Interestingly, one of the most penalized brands is European – Mini.
In contrast to the United States, which has chosen to apply a uniform 100% tax on all vehicles imported from China, Europe has opted for a differentiated treatment. The proposed surcharge (with a small negotiation period remaining), which adds to the initial 10% and only applies to electric vehicles, varies between brands, from 17.4% for BYD to 38.1% for SAIC.
This impacts all electric cars imported from China. At this point, the EU does not grant (at least for now) any privileges to its own firms: Volvo, BMW, Mini, Dacia, Smart, Cupra, and even Tesla will also be subject to additional taxes. Some of these brands are even more heavily penalized than the giant BYD.
Mini more heavily taxed than BYD
This is particularly true for the Mini Cooper in its electric version and the new Mini Aceman crossover. Both models are currently assembled in China in partnership with Great Wall. This partnership poses an issue for the BMW Group.
The difference in tax rates is not based on economic or technical criteria, but solely on the level of cooperation with the commission’s investigation. In simple terms, BYD has been very cooperative by providing access to its facilities and documents, while SAIC has not. Unluckily for BMW, their partner for producing Mini models is Great Wall, which seems to have been less cooperative.
If the increase in the customs duty is approved, the Mini Cooper E and Aceman would face an additional tax of 38.1%. This could add €13,000 to the base price (even more with options), making both models simply unsellable. With such a surcharge, the starting price of the Mini Cooper E could exceed €47,000!
The commercial career of these two models will resume in 2026 when their production is relocated to Oxford, outside the European Union…