At the end of October last year, the European Union applied the Chinese electric car tariffs. From that moment, the cars that entered the European ports had to face rates that depended on the company that exported the vehicle. We must wait to see how the industry faces this change at a time when China was betting hard on Europe.
But what is clear is that, beyond the electric car, China has a plan B to follow flooding the European Cars Union: The combustion engine.
Tariff mess. They are not really “tariffs”, but “compensatory rights”, according to The European Commission. As much as they are, they are levies that apply to importation with one objective: protect their own market. Each manufacturer has an additional tariff and 35.3% is not the same to SAIC cars, 18.8% to Geely or 7.8% to Tesla.
Before applying tariffs, China marked the goal of following Invading Europe with their carsbut regardless of increasing exports, the Asian giant took other measures. For example, one Research against European Porka very consumed product in the country that matters from Europe and that would affect several countries, especially Spain. It could also rareproduct that dominates and is vital for the development of practically all industries.
Neighborhood discussion. These pressures have paid off, and an example is Spanish. Spain, initially, was in favor of the European measure, but after China’s threats, The Spanish position was relaxing. Germany too I was on that ship Because your trade with China It is key in this segment. On the contrary that France, fearful that Byd or Mg take away market share of their Peugeot, Citroën or Renault, which have little presence in China.
The Troy Phev. However, something key in this whole issue is that tariffs have the Chinese electric car as a goal. That is, the 100%electric, leaving aside other electrification variants that remain important in a European market with countries where the loaders are not so developed. And, there, it is where China has a weapon to continue filling the territory of own production cars.
Plug -in hybrids, or Phev, are an alternative strategy of the country. Not being taxed with the same tariffs, manufacturers can expand in the European market showing its technology, design and competitive prices. An example is cars that are plug -in hybrids in practice, but electric in theory.
Jaecoo 7, for example, has gasoline and plug -in hybrid versions
The limits of hybridization. He Mazda MX-30for example, it is a car that always prioritizes electric mode. It does not pull the combustion engine until it lacks enough energy in the battery to move the car, but the combustion engine is not dedicated to moving the wheels when it has to act, but to produce electricity that is stored in the battery, this being this the one used to move the wheels.
Catl, Eminence in battery technologya few months ago a Battery with an autonomy of 400 kilometers and fast charge. But not for a 100%electric, but for a hybrid. It is like a 2.0 plug that, in practice, has a combustion engine, even if it is not used for the conventional purpose.
Pure and hard combustion. In addition to technology, the point in favor of Chinese manufacturers is the price. Brands like byd and Mg have entrance hybrids to significantly lower prices than those of the competition. But there is life beyond electrification and, although China is Pushing Strong by the passage to these “new energies” inside and outside their borders, if you have to adapt to avoid tariffs, they can do it with several models of pure and hard combustion.
He MG ZS Combustion It is an example. It was one of the gasoline cars best selling in Spain During last year. There are more players in this market, and omoda is an example. He arrived in Spain last year And it has expanded rapidly with dealers in which there are electric, hybrid and combustion cars. Jaecoo also has cars exclusively with combustion, such as Jaecoo 7and that is where the potential of Chinese companies is to gain market share by alternative roads to that of the Full Electric.
Don money. Apart from the strategy for hybrids, when tariffs were already on the horizon, it was speculated with strategies by China to manufacture in Europe and dodge these tariffs. The idea was to assemble the critical pieces of cars in Chinese factories, disassemble it and take it to European factories, where they would reassemble to shape the final car. A kind of Lego that was not official and that, from Europe, it was said that it would not serve to dodge tariffs.
But it is clear that what is working so that some countries have relaxed their position are economic pressures. Apart from the threats already commented, Chinese companies have been getting important plants to make cars. For example, Chery was done with the Nissan factory in Barcelona (What he gave A second life to Ebro). But during the last votes, They delayed their plans. And not only in Spain, Also in Italywhere they were going to make important investments.
Meanwhile, Chinese companies continue to erre with their strategy to fill Europe with their cars. Despite tariffs, we see that giants like Byd continue to get ships huge that allow to continue maintaining the rhythm of exports. It is a very juicy market with Germany betting on electrification, Norway being the King of Cotarro and territories as the Netherlands in which China has land to conquer.
Image | Engin Akyurt
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