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The European Union imposes surtaxes on Chinese electric cars
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Canada imposes 100% tax on Chinese cars
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BMW overtakes Tesla in electric car sales in July 2024
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Gabriel Attal wants to reduce aid for electric vehicles by 500 million euros
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Chinese manufacturers invest heavily in Europe
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Present at the Paris Motor Show 2024
The European Union imposes surtaxes on Chinese electric cars
Surcharges confirmed for Chinese imports
On August 20, 2024, Brussels confirmed its decision to impose surcharges of up to 36% on electric cars imported from China, a measure that will last for five years, subject to the agreement of the 27 member states.
An exception for Tesla
Tesla, which manufactures some of its vehicles in China, will benefit from a reduced rate of 9%, due to the lower level of subsidies received by the brand.
This decision is causing divisions within the EU, particularly with Germany, which fears retaliation from Beijing, and strong tensions with China, which denounces "protectionism" in disguise.
Implications for EU-China relations
The Chinese Chamber of Commerce has warned of negative consequences for EU-China relations, increasing existing trade tensions.
A strong response to Chinese overcapacity
Canada has decided to follow the example of the United States by imposing a 100% tax on electric and hybrid vehicles imported from China, in addition to the 6.1% tax already in force.
Impacts on other industries
In addition to cars, Canada will impose a 25% tax on Chinese steel and aluminum, with the possibility of extending these surcharges to other products such as batteries and semiconductors.
This measure aims to counter Chinese production overcapacity, which is seen as a threat to the global electric vehicle industry.
The potential role of Mexico
With these new taxes, Mexico could become an attractive alternative for vehicle production for the North American market, although this depends on US approval.
BMW overtakes Tesla in the European market
In July 2024, BMW surprisingly sold more electric cars than Tesla in Europe, with 14,869 units against 14,561 for the American brand.
Tesla maintains first place with the Model Y
Despite this performance, the Tesla Model Y remains the best-selling electric model with 9,544 units, ahead of the Volvo EX30 and VW ID.4.
At the same time, the overall electric car market in Europe saw a 6% decrease, despite a 2% increase in the total car market.
The Dacia Sandero remains the best-selling car
The Dacia Sandero continues to dominate the European market, with 22,400 units sold, outperforming popular SUVs such as the VW T-Roc and the Toyota Yaris Cross.
Reduction of aid for vehicle electrification
Gabriel Attal, the outgoing Prime Minister, sent ceiling letters to ministries, requesting a reduction of 500 million euros in aid for the electrification of new vehicles.
A worrying signal for the automotive industry
This reduction represents a third of the budget planned for 2024, raising concerns in the automotive industry, which fears a government disengagement from the ecological transition.
While these ceiling letters are not yet binding, they indicate a desire to prepare the ground for the future government, which will have to present its finance bill by October.
An uncertain future for electric vehicle purchase aid
The automotive industry fears that these reductions may be a precursor to a complete abolition of aid, similar to what happened in Germany.
Expansion in response to European taxes
Xpeng, a Chinese electric vehicle manufacturer, has announced its intention to build a factory and a data center in Europe to circumvent the new taxes imposed by the European Union on electric vehicles imported from China.
Industrial projects of Chinese giants
This initiative by Xpeng is part of a broader trend, with manufacturers such as BYD, Dongfeng, SAIC, Chery, and Leapmotor seeking to establish production sites in Europe to avoid these taxes and strengthen their presence in the European market.
BYD has already planned to start production in Hungary in 2025, while SAIC and Chery are targeting Spain for their factories. Dongfeng is in advanced negotiations with Italy for an industrial establishment, and Leapmotor has started production in Poland.
Strategies to circumvent trade barriers
These strategic moves aim to minimize the impact of European taxes on Chinese electric vehicles, while allowing manufacturers to more easily access the growing European market.
An enlarged show and major manufacturers present
After a cancelled 2020 edition and a criticized 2022 edition, the Paris Motor Show 2024 hopes to relaunch from October 14 to 20 with a 50% larger area and confirmed participation from many major manufacturers.
Iconic brands will be there
BMW, Mini, Ligier Group, as well as the Stellantis group (Peugeot, Citroën, Alfa Romeo) will be back, with Renault unveiling its highly anticipated all-electric Renault 5 E-Tech.
Chinese manufacturers such as BYD, Xpeng, GAC, and Seres will also take advantage of the event to present their new products, although MG Motors and Tesla have not yet confirmed their presence.
More than 30 manufacturers confirmed
As of August 26, 2024, more than 30 manufacturers have already confirmed their participation, with the complete list available on the official website of the Mondial, which will be updated regularly until the event.
