Automakers pushing back against European Union's plan for tariffs

Chinese carmakers and the country's leading auto association have expressed opposition to the EU's latest draft plan on charging extra duties on China-made EVs but said they remain committed to exploring European markets.

In July, the EU imposed provisional additional tariffs of up to 37.6 percent on EVs made in China, after it launched an anti-subsidy probe in October 2023.

It published a draft plan last week to make those tariffs definitive, at slightly revised rates, subject to approval by EU member states.

According to the plan, the anti-subsidy tax rates for the three sampled Chinese EV companies — BYD, Geely and SAIC — are 17 percent, 19.3 percent and 36.3 percent, respectively, on top of the standard 10 percent duty.

Other companies cooperating with the EU in its investigation will face extra tariffs of 21.3 percent, the EU said. For those not cooperating, they will be slapped with 36.3 percent import duties.

SAIC said it will take further legal measures to protect its rights and interests. Jia Jianxu, the company's newly appointed president, said its sales this year in Europe "will not be less" than last year.

"MG's hybrid EVs will soon enter Europe. Local car buyers' enthusiasm with HEVs beats our imagination, with orders piling up to the first quarter of 2025," he added.

SAIC admitted that its overall sales encountered some short-term fluctuations due to pressure from Europe and the United States.

But the carmaker was quick to add that it will intensify its efforts to recover from these challenges and aims for a steady increase in monthly sales.

Geely Holding Group is primarily exporting Lynk &Co and Zeekr vehicles to EU member states, while the namesake Geely brand focuses on countries in Eastern Europe, besides other markets such as the Middle East and Africa.

Lynk &Co already has tens of thousands of users in Europe and will deepen its business there, said Geely Auto CEO Gan Jiayue.

Zeekr, Geely Holding Group's premium EV brand, admits the EU's tariff plan will hit its business, adding that the company is considering local production in overseas markets but has not made any decision.

Daniel Donghui Li, CEO of Geely Holding Group, said the carmaker has made "great contributions to the European economy", with its investment in Europe over the past decade having created thousands of jobs for locals.

Li added that Geely will not necessarily resort to the simplistic response of building plants in Europe but may coordinate resources within the group, such as utilizing Volvo's or Lotus' plants, or work with other overseas partners.

In a statement on Wednesday, the China Association of Automobile Manufacturers highlighted the significant risks and uncertainties these high anti-subsidy tariffs pose for Chinese companies operating and investing in Europe.

The association warned that such measures could also severely effect the EU's automotive industry, employment and efforts toward green and sustainable development.

The CAAM urged the EU to uphold dialogue and cooperation to foster a "fair, non-discriminatory and predictable market environment" conducive to the automotive industry's development.

A spokesperson with the Ministry of Commerce said China will take all necessary measures to defend the legitimate rights and interests of Chinese enterprises in response to the EU's actions.