For Chinese manufacturers in Europe, the weather is getting worse. Indeed, after France’s environmental bonus expires in 2024 for non-European cars, The European Union plans to introduce new sanctions against these brands.

Goal? Making these cars more expensive will make them more difficult to sell to consumers. Enough to do business with local builders.

Europe opposes Chinese subsidies

A recent investigation by the European Commission highlights concerns about the price competitiveness of Chinese electric models, especially those produced by giants such as BYD and MG Motor. An ongoing investigation launched by the European Commission aims to determine whether the value chain of electric vehicles made in China receives illegal subsidies. This process has been started a significant increase in the import of Chinese electric cars to Europerecording a 14% increase in the one year since the survey began last October.
According to a document recently released by the Commission, substantial evidence tends to demonstrate the existence of these subsidies. Such a situation worries not only European producers, but also the European authorities, which are afraid of the economic consequences of this unfair competition.
For Ursula von der Leyen, President of the European Commission, the electric vehicle sector is a challenge for the future of Europe in terms of competitiveness and innovation in the green industry. He confirms that any obstacles to these efforts due to market distortions and unfair competition will be vigorously dealt with in accordance with European and international obligations.

Will Chinese cars soon become more expensive in Europe?

As part of that investigation, the registration of all Chinese electric vehicle imports began this week, paving the way for a potential increase in customs duties from next July. Customs duties may increase from 10% to 20%to protect established European manufacturers such as Stellantis, Renault or Volkswagen from the rise of Chinese brands.
BYD, in particular, has attracted attention by becoming the leading manufacturer of electric car models, even surpassing Tesla in the last quarter of last year. Facing pressure from Europe, the Chinese group announced the construction of a plant in Hungary to meet regional challenges.

For its part, MG also plans to build a factory in Europe, which will be operational in late 2025, early 2026.

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