Posted on 16 Oct 2024
The EU decision to impose extra tariffs on China-made EVs will push Chinese carmakers to establish manufacturing plants in Europe, worsening overcapacity problems for local players, Stellantis ceo has warned.
Consequently, this will further plant closures in Europe, chief executive Carlos Tavares told media at the Paris Car Show on Monday.
Early this month, the EU member states voted to impose countervailing duties of up to 35.3% on BEV imports from China, on top of the existing 10% duty. The decision came despite opposition, including from German automakers and unions.
Building manufacturing facilities within Europe, on the other hand, will enable these companies to bypass the tariffs on imported BEVs. However, this could intensify competition for local automakers.
While the tariffs are a “good communication tool,” they will “increase the overcapacity of the manufacturing system of Europe,” Tavares said. “The way to avoid customs duties is to build in Europe. You are accelerating the need to shut down plants.”
The executive also cited the example of Chinese EV major BYD, which is setting up its first European assembly plant in Hungary.
“Chinese carmakers will not go to Germany or France or Italy to build their cars, because they would have cost disadvantages there, starting from energy costs,” he said.
Kallanish Power Materials has reached out to Stellantis for comment.
Also on Monday, the European carmaker said its joint venture with Chinese EV maker Leapmotor debuted its first B-series model in Paris to global markets (see related story).
Source:Kallanish Power Materials
