To protect European electric vehicle manufacturers from aggressive pricing by Chinese players, Brussels’ offensive is too timid, according to the company Rodhium Group.
Remember that an investigation by the European Commission, launched in October, could lead to an increase in customs duties for Chinese vehicles imported into Europe. Currently set at 10%, they could increase to 30%.
Insufficient to deter Chinese manufacturers, considers Rhodium, which recommends customs duties of 40 or even 50%.
“We have margin upon margin”
BYD, for example, today sells its Seal U SUV for 20,000 euros in China and 42,000 euros in Europe, with customs duties of 30%, it would still generate 4,700 euros more, according to Rhodium calculations.
“We have margin on margin,” a BYD executive told us a few weeks ago. The Chinese company controls 95% of its value chain, an advantage that could even allow it, according to Rhodium, to lower its prices without losing money in Europe, a luxury that not everyone can afford.
With customs duties of 15%, Tesla, for example, would no longer generate any margin on its cars produced in Shanghai and sold in Europe.
At BYD we believe that subsidies provided by the Chinese state are not illegal. They also say they do not fear an increase in customs duties.
Source: BFM TV
