Nico Rosberg highlights price difference between Chinese and European electric cars
The automotive industry is going through a transition, with electric cars ready to replace internal combustion engine vehicles. However, concerns have arisen that cheap Chinese electric cars may dominate the automotive market. Shortly after the 2016 Formula 1 World Champion expressed his concerns, the European Union (EU) imposed tariffs on electric cars built in China.
In a LinkedIn post, Rosberg revealed that European electric cars were on average €14,000 more expensive than their Chinese counterparts. The German driver emphasized that this price difference gave Chinese companies a significant advantage when targeting European buyers. During his recent trip to Shanghai, Rosberg had the opportunity to test various Chinese electric cars. However, he remained uncertain whether European car manufacturers could compete with the original Chinese manufacturers (OEMs).
Just one day after Rosberg’s post, the EU implemented a series of tariffs on electric cars built in China, ranging from 17.4% to 38.1%. This tariff will apply to all electric cars manufactured in China, including those produced by BMW and Tesla. The specific tariff rate imposed on each automaker is determined by the level of cooperation during the EU’s investigation, which began in October of last year.
These tariffs will be applied starting from July 4th. To reverse this decision, at least 15 EU member states representing 65% of the population must vote against the proposal. Undoubtedly, this is the most significant measure taken by the European Union to address the issue of Chinese electric cars dominating the market in recent years.
The Ministry of Foreign Affairs of China expressed dissatisfaction with the announcement from the EU. A spokesperson argued that these tariffs contradict the principles of international trade and a market economy. Furthermore, the spokesperson stated that this measure not only undermines cooperation between the EU and China, but also poses a risk of destabilizing global automotive production and supply chains.
The EU tariffs will certainly have a substantial impact on the automotive industry. Chinese electric cars are already facing challenges in the United States due to political tensions between the two countries. With the implementation of these tariffs, automobile manufacturers such as BYD and Geely may experience a significant loss of market share to European electric cars in the coming years.
