BEIJING, July 5 (Reuters) -
China's SAIC Motor will request a hearing from
the European Commission on the extra duties it faces, the
company said on Friday, as the European Union's provisional
tariffs on made-in-China EVs took effect.
"The European Commission overlooked some of the
information and counter-arguments submitted by SAIC during the
investigation," the state-owned automaker said in a statement.
SAIC's request comes a day after the Commission
published
findings
from its nine-month investigation into China's EV market,
giving insight into the evidence it collected to support
Brussels' largest trade case yet.
The provisional duties of between 17.4% and 37.6% are
designed to prevent what the Commission's president Ursula von
der Leyen has described as a threatened flood of cheap EVs built
with state subsidies.
The report details reluctance by the Chinese government
and SAIC to cooperate with the investigation, justifying
slapping SAIC with the highest tariff rate of 37.6%. Fellow
Chinese automakers BYD and Geely face
lower tariffs of 17.4% and 19.9%, respectively. These are on top
of the EU's standard 10% duty on car imports.
There is, however, a four-month window during which the
tariffs are provisional and intensive talks are expected to
continue between the two sides as Beijing threatens wide-ranging
retaliation.
After the announcement of provisional duties in the EU
official journal, interested parties such as China and EV makers
have until July 18 to comment. They can also request a hearing.
While negotiations continue, automakers are
re-evaluating their pricing strategies based on the provisional
rates.
"What's been creating the most anxiety for China EV Inc
has been the uncertainty of how their products will be received
in these international markets," said Tu Le, founder of
consultancy Sino Auto Insights.
"But it now seems like with the U.S. and EU settled on
tariffs and rates, they can now adjust their global strategies
to include this new normal."
A spokesman for SAIC subsidiary MG in France
told
Reuters the automaker had enough MG4 vehicles in stock "to
last until November without increasing prices."