China’s GAC considers making EVs in Europe
The Chinese state-owned automaker believes local production is one of the ways to dodge EU tariffs that come into effect in November.
Chinese automaker GAC is reportedly considering making EVs in Europe to dodge EU tariffs.
The state-owned firm is one of China’s largest automakers and has a target of 500,000 overseas sales by 2030.
The company has not yet sold EVs in Europe but is launching an electric SUV customized for the European market this week.
“The tariffs issue definitely has an impact on us. However, all this can be overcome in the long term ... I am positive there is going to be a way to get it all resolved,” Wei Heigang, the general manager of GAC’s international business, told Reuters. “Local production would be one of the ways to resolve this. We are very actively exploring this possibility.”
Discussions were still at a very early stage, he said.
Earlier this month, EU leaders gave the green signal to extra tariffs on electric vehicles from China. The proposed duties of up to 45%, due to be imposed from next month for five years, has renewed fears of a damaging trade war with China.
China has urged the EU not to conduct separate negotiations over the price of China-made EVs sold in the EU.
“If the European side, while negotiating with China, conducts separate price commitment negotiations with some companies, it will shake the foundation and mutual trust of the negotiations ... and be detrimental to advancing the overall negotiation process,” China’s Ministry of Commerce said, according to a Reuters report.
EU has rejected a Chinese proposal for EVs made in China to be sold within the bloc at a minimum price of 30,000 euros (USD 32,000), a move China hoped would avert EU tariffs being imposed next month.
China’s EV companies are steadily increasing their worldwide presence and entering markets like Southeast Asia.
In July, GAC opened an EV factory in Thailand, the second overseas plant opened by a Chinese carmaker in Thailand after BYD. GAC’s factory in Thailand’s Rayong province has a planned investment of USD 64 million and an annual capacity of 50,000 vehicles.
