Chinese automakers stage a rally despite the additional tariffs imposed by the EU, with BYD Company surging 8.5%, Geely Auto and Leapmotor up more than 4%, China Evergrande New Energy Vehicle up more than 2%, Li Auto and NIO up more than 2%.
The European Commission announced on Wednesday that it would impose provisional duties on imports of Chinese electric vehicles of up to 38.1%, a move likely to draw stern words and possible retaliation from China.
The Commission, which oversees EU trade policy, said the tariffs, likely to be in place by July, would be 17.4% for BYD, 20% for Geely and 38.1% for SAIC. Other companies cooperating with the investigation would face a tariff of 21% and non-cooperating companies 38.1%.
Citi analysts said in a note that compared to previous expected 30% tariff, the 17.4% tariff on BYD will be favourable for the company and will help BYD achieve market share growth in the European market. They expect BYD’s exports to the EU this year will account for 1/4 – 1/3 of its total auto exports for the year.
