On the 5th of July, the EU’s provisional tariffs on Chinese-made EVs came into force at a slightly reduced rate compared to the tariffs announced on the 12th of June. Some automakers, such as SAIC, now face import tariffs of up to 47.6%. With tariffs now ranging between 27.4% and 47.6% the reaction amongst Chinese players has differed. While some have chosen to ride out the wave in hopes of reduced tariffs in the future, others have indicated they may increase their prices.

Chinese players respond to EU EV tariffs

NIO and Xpeng

Both Nio and Xpeng have said they remain committed to the European market. Xpeng stated it is seeking ‘ways to minimise the impact on consumers,’ with some reports suggesting the firm is possibly considering establishing a European production hub. Nio, meanwhile, has not ruled out increasing prices but expressed hope that a resolution with the EU will be reached before definitive measures are enforced in November. Both companies now face import tariffs of 30.8%.

However, for both NIO and Xpeng, Norway is their largest European market. Norway has already stated it will not increase tariffs for Chinese-made vehicles meaning both players will continue to export there, increasing their European presence from Norway.


SAIC has been hit with the highest tariffs, facing an import duty of 47.6%, which will likely force price increases in the long term and significantly impact sales of its MG brand. However, SAIC has reportedly requested a hearing with the EU Commission. After the tariffs were implemented, all interested parties have until the 18th of July to comment or request a hearing.

Various representatives for MG in Europe have stated they do not plan to increase prices in the immediate future. A French representative mentioned that they have enough vehicles in stock to last until November without raising prices.


Tesla has indicated plans to increase the price of its Model 3 due to the new tariffs, though it has not specified the extent of the price hike or when it will take effect. All of Tesla’s Model 3 vehicles sold in Europe are produced at its Shanghai Gigafactory and imported in. Tesla now faces an import tariff of 30.8% though this may change to an individual rate calculated at a later date.


Chery already has plans for an EU production base in Spain through a joint venture, this should help offset the tariffs with production expected to begin at the end of the year. Additionally, Chery has indicated it is exploring options for a possible second production site in Europe. Chery now faces an import tariff of 30.8%.


BYD, which faces the lowest tariffs, remains uncertain about whether it will increase prices in response. The company currently has plans to open a production facility in Hungary by the end of 2025, as well as this it has opened a production facility in Thailand. Both these in the short and long term could help it reduce the burden of additional tariffs.

Rho Motion’s Evaluation

The announced tariffs are still uncertain, as talks and negotiations between the EU and China will continue for the next four months, potentially leading to more lenient tariffs. Additionally, in October, the commission will vote on whether to implement the tariffs permanently. With European countries divided on the issue, there is also a possibility that the tariffs could be overturned. Additionally, with the tariffs only affecting BEV imports, some Chinese players may start pushing PHEV sales in Europe to maintain revenue.

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