The EU announced today that it's cutting tariffs for several manufacturers who make their electric cars in China. Tesla gets the biggest break, with its rate dropping from 20.8% to just 9%. The EU says Tesla received less state aid than other companies building cars in China. However, there's still some worry that Tesla gets batteries at lower-than-market prices.
The EU found that Chinese car makers got help from their government in different ways. They got cheap land, grants, and loans with good terms. This gave them an unfair edge over European car makers.
Other car brands also saw changes in their tariffs. BMW's electric Mini and Cupra's Tavascan both had their rates cut from 37.6% to 21.3%. At first, these brands faced the highest tariff because the EU thought they weren't cooperating. Now, Seat, which owns Cupra, wants the EU to lower the rate even more.
Chinese brands didn't get as much of a break. BYD's tariff went down a bit from 17.4% to 17%. Geely's rate dropped from 19.9% to 19.3%. SAIC saw its tariff go from 37.6% to 36.6%.
The EU first put these tariffs in place in July. They wanted to level the playing field because Chinese car makers were getting too much help from their government. The EU looked into all the ways China was helping its car companies before making these changes.
This move by the EU will shake things up in the electric car market. It'll be easier for some brands to sell their China-made cars in Europe, while others might still struggle with the costs.
Source: Reuters