Suryaa Now International Desk: Surya International & Automobile Bureau, Brussels/Beijing: In addition to avoiding the burden of heavy import duties imposed by the European Union, domestic... Surya International & Automobile Bureau, Brussels/Beijing: Chinese electric vehicle manufacturers are making strategic moves to avoid the burden of heavy import tariffs imposed by the European Union and to overcome a fierce price war at home. Instead of exporting cars from China, Chinese automobile companies have accelerated the process of setting up local manufacturing plants on European soil. In line with the upcoming 'Made in Europe' regulations, assembly plants and battery units are being massively expanded in Europe. Local manufacturing to beat import tariffs: The EU is implementing special countervailing duties of 17 percent to a maximum of 35.3 percent on top of the basic 10 percent import duty on battery electric vehicles manufactured in China. Due to this, the total tax burden on cars imported from China reaches almost 45 percent.
In order to completely overcome these heavy tariffs, Chinese companies are implementing a strategy to market as "European products" by setting up local plants in Europe. Expansion into Hungary and Spain centers: BYD: Chinese EV giant BYD is fast-tracking the completion of its first European passenger car manufacturing plant in Szeged, Hungary. It aims to offer low-cost EVs to European consumers without being affected by EU tariffs. Chery & Leapmotor: Chery Automobile is renovating a plant in Barcelona, Spain with a local partnership, while Leapmotor is expanding vehicle assembly in Poland with a partnership with Stellantis. Battery Dominance: CATL, the world's largest battery maker besides cars, has 100 units in Debrecen, Hungary. Gigawatt hours accelerated the massive battery plant.
The share of Chinese companies in the European battery market has already exceeded 67 percent. Harsh conditions at home.. Aiming at foreign markets: In China's domestic market, the production capacity of electric vehicles has increased tremendously, and the company's margins have fallen badly due to intense local price reduction competition. Chinese firms feel that localization is the right way to maintain their presence in the highly profitable European markets. Analysts say the new strategy poses a major challenge to the European Union's aims to curb Chinese EVs through tariffs.