Tesla Appeals for Lower EU Tariffs on China-Manufactured EVs

Electric vehicle maker Tesla has asked the European Union to subject its cars to a lower tariff than other manufacturers shipping into the bloc from China, Bloomberg reported. Tesla, on a large scale, imports EVs into the EU from its China factory in Shanghai. The Shanghai gigafactory of the company is its primary hub for vehicle exports.

According to the Bloomberg report, while the automaker assembles Model Y sport utility vehicles in Germany, it imports Model 3 sedans into the bloc from its China plant.

This special request from Tesla for a tariff reduction comes soon after the European Commission imposed additional tariff on some EV cars.

The European Commission announced Wednesday that state-owned manufacturer SAIC Motor Corp., the owner of British brand MG, will be subject to a 38.1 per cent additional tariff. The EU will apply a 20 per cent duty on cars from China's Geely Holding Group, the maker of Volvo and Polestar, and 17.4 per cent levy on BYD Co. vehicles, the report stated.

The EU's announcement comes as it investigates into what it claims is a flood of cheap, government-subsidised Chinese cars into the bloc.

According to the Bloomberg report, EV producers in China that cooperated with the Commission's investigation but weren't part of that three-company sample will be subject to a 21 per cent weighted average duty, while those that didn't cooperate face the 38.1 per cent rate.