EU: To investigate subsidies for Chinese-made EVs
-Importing cheap EVs made in China is a big problem-
– EU sense of crisis, countermeasures against China –
We will deliver a summary of the hisayoshi-katsumata-worldview article.
EU: European Commission President von der Leyen
On September 13th, the influx of cheap EVs made in China was viewed as a problem.
We will investigate whether the Chinese government’s subsidy support is hindering competition.
Multiple European media
Behind the scenes, France was strongly urging the European Commission to launch an investigation.
France has been promoting friendship with China on the diplomatic front. However, the internal situation is complicated.
Expanding the share of Chinese-made EVs:
The rate rose to 8.2%, about twice as much as last year.
Chinese government tax incentives,
Support for factory construction, low interest loans,
Setting upper limits on energy charges, etc.
China’s generous support is having an impact.
The EU aims to investigate the situation and raise tariffs.
Chinese government response:
“Reuters” (September 14)
China’s Ministry of Commerce criticized the EU over its investigation into EV subsidies.
China insists it will protect its EV companies.
China’s Ministry of Commerce issued a statement expressing its strong concerns and dissatisfaction with the EU.
Germany Schmidt Automotive Research
Chinese EVs are increasing their presence in Europe.
European EV market: Chinese car share
It rapidly increased from 0.5% in 2019 to 3.9% in 2021.
It increased to 8.2% from January to July 2021.
Utilize European brand names
90% of Chinese cars in Europe are MG, a British brand acquired by SAIC Motor Corporation.
Although it is a Chinese car, it is ostensibly named after a European company.
They are gaining influence with European brand names.
The weak points of Chinese EVs:
It lacks brand power.
The automobile industry is a world where the brand power that has been cultivated over many years matters.
It is natural for the EU to feel a sense of crisis.
Investigating China’s state subsidies
The EU will not accept distortions that arise within the EU.
The investigation could take up to nine months.
ACEA: Secretary General Sigrid de Vries
Chinese car makers are supported by public funds and government intentions.
It is a well-known fact that the company is on the offensive in Europe and other markets.
US China EV tariff rate
The US imposed tariffs on Chinese EVs close to the 27.5% level.
If the same standards were applied in the EU, it would have a major impact on EVs in China.
Chinese EVs are sold in two price ranges in the EU.
volvo polestar
Polestar was launched with Volvo Cars (Sweden), a subsidiary of Zhejiang Geely Holding Group.
There is an ultra-luxury EV priced at 89,900 euros (14 million yen).
70% made in China is cheap
On the other hand, inexpensive EVs priced at less than 30,000 euros (4.67 million yen) account for 70% of all Chinese-made vehicles.
Even compared to the same type of cars produced by major European carmakers, Chinese-made EVs are too cheap.
European EV battery regulations
In June this year, the European Parliament approved EV battery regulations.
It includes mandatory reporting of CO2 emissions during battery manufacturing.
Life cycle assessment (LCA)
Chinese-made EVs rely on thermal power generation for their production.
European-made EVs have an advantage in life cycle assessment (LCA).
The EU can impose green tariffs on Chinese EVs in the name of decarbonization.
“Environmental EU” has an advantage
The EU already has the means to exploit the weaknesses of China’s EVs.
If this happens, it will be difficult for China to put pressure on the EU.
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