The Volkswagen Group has intensified its appeal to the European Commission, seeking a reduction in tariffs on battery electric vehicles (BEVs) produced by European automakers in China. This comes after the commission decided to lower the tariff rate for U.S. electric vehicle giant Tesla to 9 percent.
On Thursday, the European Commission proposed definitive countervailing duties on BEV imports from China, following provisional duties imposed on July 5. The proposed rates range from 17 percent for China’s leading EV manufacturer, BYD, to 36.3 percent for the state-owned automaker SAIC. Meanwhile, Tesla benefits from a significantly lower rate of 9 percent “at this stage.”
For BEV manufacturers not included in the sample, the commission set a weighted average duty of 20.8 percent, while non-cooperating companies, including Volkswagen Group, face a much higher rate of 37.6 percent. These duties are in addition to an existing 10 percent duty on Chinese-made EVs.
A Volkswagen Group spokesperson expressed frustration, stating, “It is incomprehensible that Chinese manufacturers face lower countervailing duties than European manufacturers.” The spokesperson also criticized the commission for not thoroughly reviewing the previous investigation and hinted at possible future actions: “We will closely examine the EU Commission’s explanation and reserve the right to take further steps if necessary.”
Earlier this month, China also voiced its opposition to the tariffs by filing a complaint with the World Trade Organization (WTO).
Stakeholders have until August 30 to provide feedback to the commission.
Volkswagen declined to comment on reports suggesting that the tariff on its Cupra Tavascan EV model had been reduced from 37.6 percent to 21.3 percent.
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