CHINA’S electric car makers Nio and XPeng said on Thursday (Jul 4) they had no plans to quit the European market after the European Union imposed tariffs on Chinese-made electric vehicles (EVs).
The EU slapped extra provisional duties of up to 38 per cent on the EV imports because of “unfair” state subsidies, despite Beijing’s warnings the move would unleash a trade war.
XPeng, a Chinese EV firm known for its designer models, said it would remain in the European market despite the tariffs.
“As a company with a global vision, XPeng will not change its strategy of exploring overseas markets. We will find ways to minimise the impact on consumers,” the company said.
XPeng’s rival Nio, with its own high-end models, said it was “closely monitoring” the EU’s decision.
“At this stage, Nio maintains the pricing of their current models in its European markets. However, it cannot be ruled out that prices may be adjusted at a later stage as a result of these tariffs being imposed,” it said.
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Nio said it remained “fully committed to the European market”.
“We hope to reach a resolution with the EU before definitive measures are enforced in November 2024,” the firm said.
The tariffs will kick in from Friday, with definitive duties to take effect in November for a period of five years, pending a vote by the EU’s 27 member states.
Cui Dongshu, secretary-general of the China Passenger Car Association, which represents the Chinese automotive sector, said the EU’s move was “completely wrong”.
“The pricing system of Chinese EVs is market-oriented. The EV market is competition-oriented. So we think the EU tariffs are completely wrong,” Cui said.
He said costs for Chinese exporters of EVs and EU consumers would increase, and the duties would also hit the bloc’s energy conservation and green development goals.
However, Cui said he remained “optimistic” about the outcome of ongoing consultations. AFP
