Although the measure is not without precedent, those involved speak of a loss of trust.
It has been almost two decades since the first mass-produced EV of the new generation, the Tesla Roadster, rolled off the pioneering company’s production line. Since then, an entire industry has been built on the promise of an electric future, and many promising developments have come to light. The emblematic American company was then followed by many old and new players in the vehicle industry, as a result of which the purely electric drive became one of the most important subjects of development.
Everyone tried to make the technology a little more economical, more efficient and cheaper, but there has always been a significant gap in terms of pricing between EVs and the “Ice Age” until now. More and more industry players are now trying to keep the price of their mass-market models under $20,000, which has made the competition quite fierce.
But in China, where the state and capital are not sharply separated, large car manufacturers are often criticized for intensifying the price war to an almost absurd extent with the help of state subsidies. BYD, which has already become the market leader, has a model whose purchase price without customs duties does not even reach 10,000 dollars.
Although with a little delay, Europe also reacted to this phenomenon, which significantly worsens the position of our own brands on global markets. In the future, they would defend themselves against Chinese products placed in a situation with state subsidies by imposing significant, higher than ever tariffs on them, leveling the artificially inclined course in their direction.
The level of the protective duty imposed on Chinese cars will not be uniform, but the maximum level can be up to 35.3 percent, which quickly knocked out the safeguard from the Far Eastern country, which regards Europe as the largest receiving market. The measure allows certain producers to be treated more fairly based on individual assessment, but China has already retaliated against the Union.
Although Europe is not the first to protect its own country’s industry in this way, as the USA and Canada imposed tariffs on cars manufactured in Asian countries long before the EU, China has already announced changes regarding the planned investments here. The Union would also launch investigations into how to prevent their further expansion. And this may also be important in our country due to BYD’s planned investment in Szeged.
Source: www.zoldpalya.hu
