Volta Foundation’s Post

The US and EU take different approaches to the threat of Chinese EV imports – Charged EVs - https://lnkd.in/gvc63deK Governments in North America and Europe are seriously concerned about China’s growing dominance of the EV industry. Chinese automaker BYD recently surpassed Tesla as the world’s leading seller of EVs, and it’s only one of several Chinese-owned brands that are already selling cars in the US and the EU. However, the world’s #2 and #3 auto markets differ in terms of their response to the threat from #1. So far, the US has taken a much more protectionist stance than has the EU. This divergence is reflected in the mix of cars on sale—Chinese-made EVs from several brands are common

How China's probe on EV subsidies can influence automakers from EU? [ *conducting a report on the latest from EVs, sharing a few findings today ] Interpretation of stats and data comparison is crucial, whenever we deal with such a powerful money-making industry as the global auto-industry is. However, a lot has changed since the pandemic and the auto industry is nothing like it used to be, a decade ago. Not only that, but the sentiment of consumers significantly changed, ever since Tesla entered the market. The most concerning issues that the EU automakers are facing remain the cost of production, and the shift from diesel/gas into electric/ hybrid that alone is proving too costly for the EU giants. Case in Point, Mercedes-Benz AG is heavily reliant on China sales, (as per Bloomberg chart). Recently the EU Commission announced they are initiating a probe into China's EV subsidies with an eye on raising the tariffs from 10 to 25%, Financial Times reported on Monday. If that eventually happens, then the projections are definitely NOT looking good for the main automakers from Europe, as China will most certainly retaliate to any possible move by the EU. Well then, what will happen to Mercedes's revenues? and how would that play out in the end for the German automakers?... that alone should be the EU's prime concern, or perhaps Germany alone has to deal with this issue. A lot of question marks around one of the most profitable industries in Europe and we are to find out more, soon #germany #eu #china #mercedes #tesla

'The EU's request to BMW adds to evidence that the EU is gathering data not only from Chinese EV-makers such as Nio, BYD and SAIC Motor, but also from western carmakers that manufacture there, as it assesses the degree of state support for the EV industry. Tesla's exports from China are also a target of the anti-subsidy probe. Through the first seven months, Tesla sold an estimated 93,700 made-in-China vehicles across Western Europe, accounting for roughly 47 percent of its total deliveries, according to Schmidt Automotive Research. The next biggest exporter of EVs from China to Europe was SAIC's MG, with roughly 57,500 registrations.'

STATE OF THE EUROPEAN UNION European regulators on Wednesday 13th September, launched a probe into #Chinese state #subsidies for #electric #vehicle (EV) #makers in a bid to protect domestic industry from growing competition. The move could negatively impact sales of #Chinese EV makers like #Nio, #XPeng, and #BYD, while benefitting #European carmakers and #US EV #makers including #Tesla. The decision highlights #Europe's #toughening #stance against #China, in contrast to the more conciliatory approach of previous years. The probe was launched in a bid to #protect #domestic #automakers and highlight growing competition between Europe and China. In recent years, traditional European automakers like #Volkswagen, #Mercedes Benz, #BMW, and #Stellantis, have faced increased #competition from #Chinese EV makers, which have benefitted from #massive #state #subsidies for #electric #vehicles. #Registrations of #Chinese #cars in the #EU surged 130% year-over-year in the seven months through July, while those of European cars rose just 36%. "Global #markets are now flooded with cheaper #Chinese #electric #cars. And their #price is kept #artificially #low by huge #state #subsidies," European Commission President Ursula von der Leyen said Wednesday in her 2023 #State of the #Union address. https://lnkd.in/diq9hyyE

The more the merrier. Strange how politicians in Europe accuse China of subsidizing their eV’s sold in Europe when Chinese eVs in Europe are twice as expensive as in China. And no, this is not due to import tariffs (10%). And not due to transportation costs (less than $1000/car). So what is it? One aspect is mentioned in the article. The other aspect I think is that China is just at the start of moving fleets to Europe. And once they have the capacity to transport enough cars per month they will adjust European prices closer to prices in China. And flood the European markets. Obviously that would result in a giant problem for European OEMs and especially Tesla. What do you think? Leave your thoughts in the comments…. #ev #electricvehicles #electrification https://lnkd.in/e8zmvr4y

BYD is building a EV assembly plant in Mexico. So far, everyone assumes that it's so they can become USMCA compliant and sell cars in the United States without tariffs. But is that realistic or even possible? Or is there some other target? An indepth look at the laws governing BYD's entry into the US...and Canada.

Tesla got what it asked. In 2021, #Tesla had written to nodal central ministries seeking a reduction in import duties on fully assembled cars and had asked for duties to be cut to 40-15 per cent depending on the price of the car. The new policy effectively fulfills that demand. The new #EV policy: EV passenger cars (e-4W) can initially be imported with a minimum CIF value of $35,000, at a duty rate of 15 per cent for a period of 5 years. https://lnkd.in/g6bWyGwy

EVs built in China accounted for 19.5% of all EVs sold in the EU last year, about 300,000 units. However, just because the cars are being built in China does not mean they are manufactured by Chinese OEMs. In fact, over half of those EVs come from Western carmakers; 28% of all China made EVs were imported by Tesla, and a further 20% coming from Renault’s Dacia. Chinese brands are quickly catching up. They went from just 0.4% of the EV market in 2019 to 7.9% in 2023. Analysts project companies likes BYD, GEELY, MG and others could capture 20% of the European EV market by 2027. The European Council is already looking into way to limit the influx of Chinese made EVs, including tarrifs. Chinese OEMS are already investing in European manufacturing in anticipation of the potential tariffs. Takeaways: Automotive jobs will leave the continent as European legacy carmakers have been slow to transition to electric vehicles. European trade policy going forward should focus on developing local manufacturing across the EV supply chain from batteries to software. Raising tariffs on imported EVs from China might buy European incumbent OEMs time, but it will not guarantee their survival long term. Source: Transport and Environment - https://lnkd.in/ggpEYzWb #Tesla #BYD #batteries #EV #tariffs