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Following the announcement on the 12th of June, that the EU plans to introduce additional tariffs for Chinese made EVs, Norway has revealed it will not follow suit. In an email to Bloomberg, Norway’s Finance minister Trygve Slagsvold Vedum commented “Introducing tariffs on Chinese cars is neither relevant nor desirable for this government.” Norway has the highest EV sales penetration rate of anywhere in Europe, and by the end of 2025 it aims to reach 100% zero emission sales. Other European non-EU members such as the UK, are still yet to announce if they will follow the EU in introducing tougher tariffs.
EU tariffs
Currently, the EU has a 10% import duty on BEVs. However, this is set to change following the Commission’s investigation into Chinese-made vehicles. Provisional tariffs are set to be introduced from 4th July 2024 if discussions with Chinese authorities do not yield an effective solution. Key Chinese OEMs such as BYD, Geely, and SAIC will face additional duties of 17.4%, 20%, and 38.1%, respectively. Other OEMs who cooperated in the investigation but were not sampled will face a 21% tariff, while those who did not cooperate will face a 38.1% tariff.
Norway will not follow suit.
Norway a leader in EV adoption
Norway’s EV penetration rate in May 2024 was 69%, down from its average penetration of 79% in 2023. The country has been the focus of market entry for many Chinese brands before they enter the broader European market. In 2023, 14% of BEVs sold in the country originated from China, and 23% of BEV sales so far in 2024. Big Chinese players in the country include BYD, SAIC, Xpeng, Geely, JAC and Dongfeng, the latter two have no sales in Europe outside of Norway.
Rho’s evaluation, Norway is stalling in the final steps of reaching 100% ZEV sales
Norway’s EV penetration rate has stagnated since the end of 2021, at around 80%. Since then, the country has struggled to increase its penetration. Chinese made vehicles will potentially play a role of overcoming its final hurdle.
Data Manager at Rho Motion, Charles Lester commented, “EV penetration has struggled within smaller vehicle segments, due to a lack of consumer choice and high costs. There are a range of vehicles expected to hit the market soon which are expected to aid BEV sales penetration in these segments.”
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Sources: Bloomberg
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