Volkswagen has stated that the higher import tariffs for Chinese-made electric vehicles (EVs) in the European Union (EU) will only provide a temporary relief, emphasizing the need for reduced costs to maintain competitiveness in the long term.
The Chief Financial Officer, Arno Antlitz, mentioned that Chinese automakers are planning to produce cars in Europe, and the EU’s proposed additional barriers could result in retaliatory actions, which could be detrimental for the industry.
China recently indicated its readiness to impose tariffs of up to 25 per cent on imported cars with large engines, escalating trade tensions with both the US and EU.
Mr. Antlitz highlighted the importance of enhancing cost competitiveness over the next two to three years to navigate the current trade landscape effectively. He expressed concerns about the direction of the current tariff discussions.
Major car manufacturers like VW, BMW, and Mercedes-Benz Group, who heavily rely on the Chinese market, may face challenges due to potential retaliatory measures. The EU is expected to announce the results of the EV subsidies investigation in early June, potentially leading to higher tariffs.
Chinese EV brands such as MG Motors and BYD accounted for around 9 per cent of battery-only vehicle sales in 2023, a figure set to increase to about 20 per cent by 2027. BYD is planning to introduce its Seagull hatchback in Europe next year at a competitive price, posing a challenge to established automakers like VW, Stellantis, and Renault.
Mr. Antlitz emphasized the need to improve cost competitiveness to make EVs more affordable while ensuring adequate margins to support the industry’s transformation.
