Chinese EV Giant BYD to Build $1 Billion Plant in Turkey: Strategic Move and Global Implications.
What changes do you think a $1 billion investment could bring about in the fastest-growing sector of the auto industry? The European Union has increased tariffs on electric vehicles from China to protect competition among automakers in Europe. The new tariffs on electric cars imported from China have spiked from 17.4% to 37.6%!
Imagine a car with a Manufacturer’s Suggested Retail Price of $35,000. If a 37% tariff is applied to this imported car, it could impact the final price: $35,000 + $12,950 = $47,950 after accounting for the tariff.
When a tariff of 37% is placed on imported cars, it means that the government imposes an additional cost of 37% on the value of those cars when they enter the country. This tariff is designed to protect domestic car manufacturers and encourage consumers to buy locally produced vehicles.
For instance, let’s consider the European Union (EU) and its recent investigation into Chinese electric vehicle imports. China’s surge in EV exports to Europe led the EU to consider imposing tariffs on these imports. If the EU goes ahead, the levies would likely fall within the 15-30% range. German carmakers, who heavily rely on the Chinese market, oppose these measures due to fears of swift Chinese retaliation. BMW, for example, imports Chinese-made Mini EVs and the i-X3 into Europe, and China is BMW’s largest single market. So, a 37% tariff on imported cars can significantly impact trade dynamics and provoke responses from both exporting and importing countries. But the response from a Chinese automaker shocked the entire car industry.
#byd #china #europe #turkey
15 окт 2024
