At the announced European Union investigation into electric cars, from China are imported into the EU, a non-Chinese manufacturer is particularly in focus: Tesla. The US electric pioneer is said to be one of the car manufacturers that benefited from China’s subsidies, the news agency reported Bloomberg
on Tuesday, citing people familiar with the matter.
The electric car manufacturer from Elon Musk (52) is said to have enjoyed advantages over other foreign car manufacturers in terms of ownership of its Chinese company. Tax breaks, cheap loans and other forms of support would also have helped make China Tesla’s most important market outside of the United States USA close. The car manufacturer delivers more electric vehicles from the People’s Republic to Europe than any other manufacturer.
Tesla declined to comment. The share
lost in trade in new York most recently 1 percent.
China’s subsidies distort the EU market
EU Commission chief Ursula von der Leyen (64) announced almost two weeks ago that the EU would initiate an investigation into state support for electric cars from China. “The price of these cars is artificially depressed by huge government subsidies – this distorts our market,” she said in the European Parliament in Strasbourg. That is not acceptable. World markets would be flooded with cheaper Chinese electric cars.
With the anti-subsidy investigation, von der Leyen wants to examine whether and to what extent Beijing Tesla and the domestic manufacturers like BYD, SAIC and Nio promotes. On this basis, she wants to adjust the competitive conditions in the EU in return, according to insiders. It is conceivable, for example, that the EU could impose punitive tariffs. The measures could fundamentally change the competitive dynamics in Europe, the second largest electric car market after China. After taking evidence that formed the basis for the investigation, the EU now wants to consult authorities and companies.
Tesla boss Musk began exporting his Model 3 sedans from his factory in Shanghai at the end of 2020. In July 2021, Musk described the factory as its “major export center.” Up to and including July, the electric car manufacturer is estimated to have sold around 94,000 “Made in China” vehicles in Western Europe this year. This corresponds to almost half (47 percent) of Tesla’s total deliveries. The second largest exporter of Chinese-made electric cars is SAIC’s Chinese car brand MG.
The German auto industry has been under massive pressure for several months in view of the “invasion” of cheap Chinese electric vehicles in Europe. Car expert Christian Malorny from the management consultancy Kearney commented not very optimistic in the mm interview recently
regarding Europe’s car manufacturers and the threat of competition from the Far East. The Chinese car manufacturers also triumphed at the IAA Mobility in Munich with their new models recently like never before.