China’s electric car inventories surge after EU imposes additional import tariffs of up to 38% | Wilnesh News

Shares of Chinese electric vehicle makers were mostly higher on Thursday morning after the European Union announced a day earlier that it would impose tariffs of up to 38% on Chinese electric vehicles.

Hong Kong’s Hang Seng Index It opened up 1.23%, mainly driven by gains in electric vehicle stocks.

Electric vehicle company BYD was the biggest gainer on the Hang Seng Index, rising 8% in early trading. auspicious rose about 4%, while peers Nioh and ideal car Its shares rose 1.75% and 2.67% respectively. state support SAIC A drop of more than 2%.

One analyst noted that the EU’s tariffs were “modest” compared with those imposed by the United States on Chinese electric vehicles.

On Wednesday, the European Union said it would impose additional tariffs on Chinese electric vehicle manufacturers with large operations in Europe. The world will If a 17.4% tariff is imposed, Geely Automobile will impose an additional 20% tariff. SAIC will have to pay an additional tariff of 38.1%, the highest among the three. This is above the standard A 10% tariff has been imposed on imported electric vehicles.

All three manufacturers are sampled as part of an ongoing EU investigation.

The European Commission stated that other Chinese electric vehicle companies that cooperate with the investigation but are not sampled will be levied an additional 21% tariff, while those Chinese electric vehicle companies that do not cooperate with the investigation will be levied an additional 38.1% tariff.

The EU said in a statement statement It tentatively concluded that Chinese EV manufacturers benefited from “unfair subsidies” that posed a “threat of economic harm” to the EU EV industry.

“This move is mild compared to the 100% tariffs imposed by the Joe Biden administration on Chinese electric vehicle imports into the United States (raised from 25% last month), and the 25% temporary tariffs are in line with market expectations of 20% – 25% we think,” Morningstar equity analyst Vincent Sun said in a note Wednesday.

The EU imposed additional tariffs after launching an investigation in October. The commission said in a statement that the tariffs are currently temporary but will be implemented from July 4 if discussions with Chinese authorities fail to reach a solution. The EU said final measures would be taken within four months of imposing temporary tariffs.

Joseph Webster, a senior fellow at the Atlantic Council’s Global Energy Center, said the EU “appears to be warning” China’s government-backed State Administration for Industry and Commerce to build production facilities within Europe or face tariffs.

“China’s SAIC Motor has received the highest tariff of 38.1%,” Webster said in a report. The automaker has limited operations on the continent and has yet to build its first European production plant despite considering it for nearly a year. Site selection. Wednesday report.

“Both BYD and Geely have significant investments in Europe,” Webster said.

In December, BYD promised Building new electric vehicle factory in Hungary After opening Electric bus manufacturing plant in the country. Geely owns Swedish carmaker Volvo and has begun moving production of some cars from China to Belgium.

–CNBC’s Lim Hui Jie contributed to this report.