Nearly a fifth of electric vehicles sold in Europe in 2023 it was produced in China (in Italy 23%) and this year the quota is destined to reach il 25%. The prediction – a real alarm – is contained in the new analysis of Trasnsport & environment, the European Federation for transport and the environment. and it comes just as the European Union is considering whether to impose a surcharge on tariffs for importing cars made in Chinain order to balance the subsidies that Chinese industry receives from Beijing.
Tariffs help us but alone they are not enough
But a tariff increase, if it creates a wall, would also also has the effect of stimulating international competitors to locate their production in Europe. And therefore what is suggested is certainly to provide a shield to companies that benefit from state aid but at the same time facilitate the transition of the European automotive industry taking into account the reality of the market. L’increase in EU tariffs to 25%. on all vehicle imports from China, according to T&E analysis, would make the Beijing’s sedans and mid-size SUVs more expensive than their European equivalents, favoring local production. Compact SUVs and larger cars imported from China should remain slightly cheaper with this tariff. “The tariffs will push automakers to localize the production of electric vehicles in Europe – explains Andrea Boraschi, director of T&E Italia, – and this is potentially good for employment and the skills we want to grow among workers. But they will not protect the European automotive industry for long. Chinese companies will build factories on the old continent and when this happens our industry must be ready to take up the challenge.”
From China but not Chinese
For now, imports into Europe from China have largely consisted of Tesla, Dacia and BMW. But T&E predicts that Chinese brands they could reach the 20% in 2027 which added to those just mentioned would constitute the largest slice of the green market.
The battery hub
But also the Investments in lithium-ion batteries are at risksince the Cells produced in China cost at least 20% less compared to Europe and Chinese battery manufacturers are in advantage both in terms of technology and supply chains. The United States is also attracting investment in battery production thanks to generous subsidies. In the dossier it is believed that they are necessary industrial measures – such as subsidies for clean and circular production and made in EU objectives – to stimulate local cell production. Since none of these measures are currently in force, a there will also be an increase in tariffs relating to the import of battery cells. Compared to the US and China, the EU currently has the lowest tariffs. “Batteries are the new solar panels. China is ahead and its state-owned companies have enormous production overcapacity – explains Andrea Boraschi. -If we really want to have a diverse and resilient battery supply chain in Europe, we need to develop it now or we may not get a second chance.”