China: Strong dissatisfaction with EU subsidy criticism
-Tesla, BYD, and SAIC refuse to comment-
-Focus on “Did Tesla receive subsidies?”-
A summary is provided by hisayoshi-katsumata-worldview.
China Automobile Industry Association:
On September 26, the company issued a statement opposing the EU’s investigation into subsidies for Chinese-made EVs.
It called for the EU not to investigate or take regulatory action.
Tesla, BYD, and SAIC refuse to comment:
If Chinese companies had not received subsidies, they would have openly denied it.
If exports were obtained with subsidies, it would mean that “the government was in collusion with the companies.”
China’s EV exports to the EU:
48.1% (2022) of China’s EV exports will go to Europe.
That is why China is nervous about the EU’s investigation into government subsidies.
Government subsidies for Chinese EV manufacturers:
Chinese EV manufacturers have received large amounts of government subsidies from the factory construction stage.
Claims of the China Automobile Industry Association:
September 26th, Chinese companies have continued to innovate in market competition.
”It is not supported by subsidies,” he insists.
“It has been accepted by consumers around the world,” he emphasized.
Bloomberg (September 26th)
We published an article titled “Tesla’s Chinese-made EV is the target of EU subsidy investigation.”
Many manufacturers benefit from Chinese state subsidies.
“Was Tesla in the US included in that list?”
Tesla stock plummets:
Following the report, Tesla shares briefly fell 1.6% in after-hours trading on the U.S. stock market.
Schmidt Automotive Research
Tesla exports to the EU:
From January to July this year, 93,700 vehicles, or 47% of the vehicles delivered from the Shanghai plant, were sold in Western Europe.
Export of Chinese-made EVs to the EU:
The next largest manufacturer is SAIC, with 57,500 units.
Nihon Keizai Shimbun electronic version (September 25):
We published an article titled ”Can China avoid criticism of EU subsidies?”
The expansion of the influx of cheap Chinese-made products is due to subsidies from the Chinese government.
If cheap Chinese-made products take over, European manufacturers will lose business opportunities and this will lead to fewer jobs.
On the other hand, the Chinese side denies any correlation between subsidies and sales prices.
China’s EV subsidy ends:
Chinese industry association: Mr. Cui Dongshu
The Chinese government said, “EV subsidies will end at the end of 2022.”
In other words, they “admitted that they were providing subsidies until the end of 2022.”
This statement became a breakthrough, and the reality of past subsidies became clear.
EU automotive industry:
The EU has many jobs, mainly in Germany and France.
European car sales share in China:
This fell from 23% in 2019 to 18% from January to June 2023.
The EU will never tolerate EVs made in China that rely on subsidies.
A sense of alarm spreads across Europe:
Sensing their inferiority, Chinese EV manufacturers are threatening to build EV factories in the EU.
BYD
In September, at an exhibition in Munich, Germany, the company stated, “At the end of the year, we will complete the site selection for the completed vehicle plant.”
great wall motor
He said that the company is considering building new factories in Germany, Hungary, and the Czech Republic.
SAIC Motor Group
In mid-September, the company announced that it would be opening a new plant, saying, “We have begun selecting an automobile assembly plant in Europe.”
Chery Automobile
British media reported that the company is in talks with the British government to build a factory.
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