The new proposal on tariffs by the European Commission on electric cars manufactured in China will have repercussions in Spain, where almost 30% of sales of these cars correspond to brands from the Asian country or to Tesla models exposed to manufacturing in China itself. For the consumer, the consequences are linked to the possible increase in the prices of vehicles that are still expensive and have difficulty making way for combustion vehicles, despite the European environmental commitment.
Of the 28,969 100 percent electric cars sold in Spain until July, 8,068 are from brands that will feel the effects of this measure in one way or another, according to data from the manufacturers’ association Anfac. What is presented as good news for European manufacturers may not be much for a market that is far behind in electrification compared to the rest of Europe, where electric cars represent barely 4.68% of the total and whose sales are growing at a meager 6.%.
Given their current sales volume, the Chinese models most directly threatened are the MG4, which has sold 1,735 units as of July, and the BYD Atto, which is also in the top ten in Spain. Although less successful, the BYD Dolphin, BYD Seal, MG Marvel and MG5 have also sold hundreds of units. Other electric brands with business in Spain are Hongqi, Dongfeng, DFSK and BAIC.
However, the damage is greater because the tariffs also partially upend US automaker Tesla, with an additional 9% specific tax on its cars assembled in China. The newspaper Financial Times Yesterday, it was reported that Elon Musk’s company offered to conduct a comprehensive investigation from Brussels to avoid tariffs and that it had already expressed its complaints to several European governments.
The Tesla Model Y, the second best-selling car in Spain, has good prospects because it is mainly manufactured in Germany, but the first in the ranking, the Model 3, with 4,780 units until July, could come as much from Fremont, in the United States, as from Shanghai, China.
Adding to the Chinese electric brands is the influence of Tesla, which also manufactures in the Asian market.
According to the latest annual data from customs, Spain imported €2.85 billion worth of cars from China in 2023, up 108% on the previous year. The country has overtaken France and Japan in this area and is now only behind Germany. The figure includes both electric and combustion.
Beyond its trade offensive—BYD has just launched the Dolphin electric car in Spain for less than €20,000—the longer-term strategy for Chinese manufacturers to avoid protectionist measures is to set up factories in Europe. Chery has been a pioneer by opening a plant in Barcelona, and it already has deals to produce cars for the Chinese brand Omoda, which currently runs on gasoline.
The Brussels proposal, announced this week, is due to be confirmed in October and could be in place for five years. It would add specific tariffs to each brand, which in the case of SAIC, which owns MG, are 36.3% and in the case of BYD, 17%. The percentages are generally lower than initially thought, but are in addition to the 10% that has been in place since July 5.
China has responded strongly. The Commerce Ministry announced yesterday that it is investigating imports of some dairy products from the European Union, focusing on subsidies from Ireland, Belgium, Italy, Croatia, Finland, Romania and the Czech Republic.
The China Association of Automobile Manufacturers (CAAM) also warned yesterday of the “huge risks and uncertainties” surrounding the EU move, saying Brussels’ proposal “harms the confidence of Chinese companies operating and investing in Europe.” Chinese automaker SAIC said in a statement yesterday that it would overcome the setback “in the short term” and expressed regret for “the erection of artificial trade barriers.”
Chinese manufacturers warn of ‘enormous risks’, accuse EU of ‘damaging their trust’
Brands such as Volvo, Mercedes, BMW or Citroen have models among the ten best-selling in Spain. These groups, which have important alliances in China and a commercial presence, did not support the imposition of tariffs.
“Infuriatingly humble social media buff. Twitter advocate. Writer. Internet nerd.”
