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China's BYD, SAIC's MG undecided on EV price hikes due to tariffs, sources say
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China's BYD, SAIC's MG undecided on EV price hikes due to tariffs, sources say
Jun 21, 2024 2:40 AM

PARIS, June 21 (Reuters) - Chinese carmakers BYD

and SAIC subsidiary MG have not yet decided whether

they will increase prices on electric vehicle sold in the

European Union to offset the impact of additional duties,

sources close to the two groups have told Reuters.

The sources said that there would be no decision before July

4 when the provisional duties take effect.

They declined to be identified because the information is

confidential.

The companies did not immediately respond to a request for

comment.

A spokeswoman for Dacia, Renault's low-cost brand

whose electric Spring is imported from China, said that an

announcement on its price was "not on the agenda". It will be

subject to a 21% duty.

WHY IT'S IMPORTANT

Tesla is the only carmaker to announce plans to increase

prices - on its Model 3 - to compensate for the higher cost at

European borders as a result of the tariffs.

Analysts expect other manufacturers producing in China will

pass on part of the extra cost to consumers.

CONTEXT

Last week, the European Commission proposed tariffs of up to

38.1% on EV imports from China despite Beijing's protests,

plunging trade ties to a new low and risking punitive action

from the world's second-largest economy.

MG faces tariffs of 38.1%, on top of the current 10% tariff,

while for BYD the new tariffs amount to 17.4%.

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