The EU Commission is pushing for import duties Electric cars from Chinese production, sometimes more than 35 percent – to varying degrees depending on the manufacturer. In order to avoid this in the future, the Chinese state-owned car manufacturer GAC is examining the production of electric cars in Europe, as the general director of international business told the Reuters news agency.
GAC is one of the largest Chinese car manufacturers and aims to sell 500,000 vehicles overseas by 2030. The company does not yet sell electric cars in Europe, but will unveil an electric SUV tailored to the European market at the Paris Motor Show, which begins on Monday.
New work or takeover of an old one?
GAC still sees Europe as an important market, despite the measures taken by the European Commission to impose tariffs on… China Electric vehicle manufacturing is “relatively open,” Wei Heigang said. “The issue of tariffs definitely has an impact on us. However, in the long term, this can be overcome… I am sure there will be a way to solve the problem,” he said.
“Local production would be one of the ways to solve this,” Wei Heigang added. “We are very actively exploring this possibility.” Discussions are at a very early stage and the company is still considering whether to build a new factory or want to use or take over an existing work.
The compact off-road vehicle shown in Paris with a range of 520 kilometers called “Aion V” is scheduled to be introduced in some European markets in mid-2025 and will cost less than 40,000 euros. The final price has not yet been determined.
The EU’s plans for tariffs on Chinese electric cars have met with criticism from German manufacturers. They fear that this could affect free trade as a whole – and therefore their business with China. China has recently responded to the additional tariffs being discussed with anti-dumping measures against brandy from the EU.
With the threatened European tariffs, Brussels plans to take action against Chinese subsidies. The government in Beijing is accused, among other things, of allowing manufacturers in the country to benefit from a state-mandated policy of overcapacity and laxer standards when it comes to protecting workers and the environment. The government rejects the allegations.