European car makers facing cut-price competition from Chinese rivals have helped persuade the EU to begin a trade investigation that could see consumers paying higher prices for EVs.
Brussels believes cut-price Chinese electric vehicles are distorting the EU market, and endangering the current market leadership of its home-grown car makers. The investigation has been called for by states including France, where domestic car makers believe they are facing competition that’s unfair.
The probe was announced in a speech today by European Commission president Ursula von der Leyen. She stated that the electric car sector is a huge potential market for Europe’s car makers, but “global markets are now flooded with cheaper Chinese electric cars” and that their costs are being kept artificially low by “huge state subsidies”. If the inquiry proves that is indeed the case, World Trade Organisation rules allow for the imposition of significant tariffs that could make buying Chinese cars much more expensive for consumers.
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