On May 27th, it was reported that Volkswagen's Chief Financial Officer publicly stated that the EU imposing higher import tariffs on electric cars produced in China will only provide a "brief breathing space."
According to the Volkswagen executive, Europe should focus on enhancing its own capabilities in dealing with Chinese electric cars by reducing costs, improving cost-effectiveness, and enabling companies to better compete.
Previously, BMW's CEO had openly opposed the EU's practice of imposing additional tariffs on Chinese electric cars, stating that such actions would only "shoot oneself in the foot."
Reports indicate that Chinese car manufacturers have a cost advantage of 30% or more compared to their European competitors. By 2022, Chinese electric cars held a 16% market share in Europe, which is projected to rise to 19% by 2023.
The US has already announced a 100% tariff on Chinese electric cars, and the EU may follow suit by imposing tariffs as high as 55% to effectively curb the import of Chinese electric cars.
The EU could also employ other measures to protect the European electric car industry, such as restricting Chinese imports for national security reasons or increasing consumer subsidies for electric cars manufactured within the EU.
