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VW Doubts The Usefulness Of Import Duties On EVs In China

Published

2 years ago

May 25, 2024

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Volkswagen expects that a higher import tax from the European Union for electric cars produced in China can only help temporarily. According to financial CEO Arno Antlitz of the car company, it is necessary that the costs of European manufacturers be reduced. This is the only way companies can compete with Chinese competitors.

The EU will shortly inform Chinese exporters of electric cars about a possible increase in import tariffs. At the moment, that rate is still 10 percent. The European Commission is investigating China’s subsidies to Chinese electric car manufacturers.

“We need to use the next two to three years to become even more competitive on the cost side,” Antlitz said in a post on LinkedIn. “It is very questionable whether the current tariff discussion is leading in the right direction.”

Antlitz expects that electric car manufacturers from China are about to start production in Europe. Moreover, the CEO fears that China will take retaliatory measures if the EU charges higher import tariffs. For example, the country threatened on Wednesday with import duties of up to 25 percent on imported cars with larger engines from the EU and the United States, which also has an impact on Volkswagen’s exports to China.