PARIS — Chinese electric automobile makers are expanding into Europe, whilst politicians consider the potential for high tariffs on vehicles from the world's second-largest economy.
Nio opened a showroom in Amsterdam this week and Xpeng unveiled its SUVs G9 and G6 in France last week. Xpeng also exhibited a automobile on the VivaTech conference in Paris. and BYD also showed one in all his vehicles.
The public marketing efforts come amid an ongoing investigation by the European Commission, the manager arm of the European Union, into subsidies given to electric vehicle manufacturers in China. The final result of that investigation could lead on to tariffs on Chinese electric automobile imports.
The US has already taken such a step and imposed 100% tariffs on Chinese electric automobile imports under the Biden administration.
Chinese electric automobile makers are aggressively expanding abroad to challenge Elon Musk Tesla but in addition to realize a bonus over the established automobile manufacturers.
Companies like BYD have raised concerns concerning the cutthroat prices of vehicles. BYD has a automobile called the Seagull, a small all-electric compact that starts at just 69,800 yuan, or lower than $10,000. The ability of Chinese firms to bring low-cost cars to market could increase pressure on established automakers, who may not find a way to maintain up with the reduced prices.
China's electric vehicle industry has boomed through the years due to incentives and support from the Chinese government, worrying politicians in Europe and the United States.
When CNBC asked this week about possible EU tariffs, French Finance Minister Bruno Le Maire didn’t confirm that such measures were planned, but said his aim was to “protect our industry and ensure that there is a level playing field on the international stage.”
However, not all electric vehicle manufacturers welcome the tariffs. Tesla CEO Musk, for instance, said he was not in favor of tariffs on Chinese electric vehicles.
“Neither Tesla nor I have asked for these tariffs,” Musk said in response to a matter from CNBC's Karen Tso during a question-and-answer session on the VivaTech conference on Thursday.
“In fact, I was surprised when they were announced,” he added, referring to the 100% U.S. import tax.
Earlier this yr, Musk warned that Chinese electric vehicle manufacturers would “crush” their competitors abroad if there have been no trade barriers.
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