Chinese automakers against EU tariffs: BYD plans local production in Europe

The Chinese electric vehicle manufacturer BYD is dissatisfied with the tariffs planned by the European Union on electric vehicles manufactured in China, while simultaneously promising to produce nearly all electric cars sold in Europe locally in the future. This strategy was announced by Stella Li, BYD's Executive Vice President, in an interview. Li explained that BYD aims to produce components locally and assemble battery packs in its Hungarian and Turkish facilities, with only the battery cells continuing to be imported from China. The company seeks to strengthen its market position in Europe and make production predominantly local. At the Paris Auto Show, Li emphasized that the company strongly opposes the EU's tariff calculations. She highlighted that the tariffs could negatively impact the complex cost structures of the automotive industry and called for a reconsideration of such measures. BYD is still contemplating whether to pass on the additional 17% tariffs to consumers on top of the existing 10% or to absorb them itself. Selling vehicles for under 30,000 euros might not be feasible under these conditions. Similarly, Tianshu Xin, CEO of Leapmotor International JV, whose company is controlled by Stellantis, expressed concerns about the potential impacts of the EU tariffs on the European manufacturing selection of models. However, Leapmotor's in-house development could facilitate partial cost absorption. Outside the EU, UK Trade Minister Jonathan Reynolds stated that the UK does not intend to impose comparable import tariffs on Chinese EV imports. In contrast, EU member states support import tariffs of up to 45% as a measure against allegedly unfair subsidies by Chinese manufacturers, which are denied by Beijing.