BMW boss Oliver Zipse has warned that the European Union’s imposition of tariffs on Chinese electric vehicle (EV) imports could significantly damage the bloc’s “Green Deal” industrial plan and hit German carmakers who import cars made in China, reports Reuters, quoted by Agerpres.
The European Commission launched an investigation into the Chinese electric vehicle industry in October. The investigation, scheduled to last 13 months, seeks to determine whether cheaper electric vehicles made in China unfairly benefit from state subsidies. China denounced the investigation, which it described as “pure protectionism” and stressed that it would likely harm Sino-European trade relations.
“Soon we’ll see that we’re turning left to right,” Oliver Zipse said after the German carmaker reported quarterly results.
BMW brings the Mini EV and iX3 models from China to the European market.
Like German rivals Volkswagen and Mercedes-Benz, BMW is heavily dependent on revenue from its business in the Asian nation. China is BMW’s second largest market after Europe, accounting for nearly 32% of sales in the first quarter of 2024.
“We don’t think our industry needs protection. Operating worldwide gives automakers an industrial advantage. We can easily jeopardize this advantage by introducing customs duties”, warned Zipse.
In March, the European Commission began customs registration of electric vehicle imports from China, meaning duties could be imposed if the investigation finds that Chinese carmakers are unfairly benefiting from state subsidies.
The investigation would be completed by November, but the EU could impose provisional tariffs in July.
On Wednesday, EC President Ursula von der Leyen said in Berlin that Europe must take action to prevent subsidized Chinese electric vehicles from flooding the bloc’s market.
French President Emmanuel Macron and von der Leyen asked Chinese President Xi Jinping on Monday to ensure a more balanced trade with Europe.
Zipse explained that BMW and other car manufacturers have “bilateral dependencies not only on the final product, but also on the part of components and raw materials”. The imposition of customs tariffs would affect the new EU standards on CO2 emissions.
“There won’t be a single car in the EU without components from China,” Zipse said.
Tags: car Chinese components tariffs electric vehicles China backfire
