Milan Nedeljković of BMW states that Chinese electric vehicle prices have dropped to levels that make no business sense and distort market competition, as reported by tv2.no. Speaking in an interview with the automotive outlet Motor1.com, Nedeljković argues against imposing higher import tariffs and instead calls for negotiated agreements between Europe and China to secure fair market conditions.
BMW Calls for Negotiated Trade Solutions
European automakers face intense pricing pressure as Chinese manufacturers introduce affordable vehicles packed with advanced technology. Nedeljković emphasizes that while BMW supports free trade and open competition, incomprehensible pricing distorts the European market. Rather than relying solely on steep import duties, he advocates for voluntary agreements that establish market-based pricing and equitable operating conditions for all manufacturers.
EU Tariffs and the Risk of Battery Supply Disruptions
The European Union has already implemented additional countervailing duties on battery-electric vehicles imported from China, with tariff levels ranging between 17 percent and 35.3 percent depending on the specific producer. However, Nedeljković warns that piling on further tariffs carries significant risks. He points out that retaliatory measures from Beijing could restrict European access to essential battery cells, a component upon which the European automotive industry remains heavily dependent.
Slumping Sales in China and the Made in Europe Debate
BMW experiences direct competitive pressure within the Chinese market, where the company manufactures the Mini. Annual reports from BMW Group show that combined sales for BMW and Mini in China dropped from a peak of 847,900 vehicles in 2021 down to 626,000 units over the past year. Meanwhile, the European Commission continues to evaluate strategies to address the widening trade imbalance with China.
In response to these market shifts, Volkswagen Group, Renault Group, and Stellantis released a joint initiative termed Made in Europe. This proposal suggests requiring that 70 percent of components in vehicles sold locally originate within Europe. Economic research institute Bruegel estimates that implementing such a quota could increase the retail price of an electric vehicle by more than 20,000 kroner, driven largely by higher production costs for European-made battery cells. Unlike EU member states, Norway applies no import tariffs on Chinese automobiles.
Details on European Union Tariffs and Declining Sales in China
What tariff levels has the European Union levied on Chinese electric vehicles?
The European Union has imposed additional duties ranging from 17 percent to 35.3 percent on Chinese-built electric vehicles, depending on the manufacturer.
How have BMW sales performed in China recently?
BMW Group sales in China, including Mini, fell from a record 847,900 vehicles in 2021 to 626,000 units last year.
What does the Made in Europe proposal entail for automakers?
A joint proposal from Volkswagen Group, Renault Group, and Stellantis suggests that 70 percent of a vehicle’s parts should originate in Europe, though researchers estimate this could raise elbil prices by over 20,000 kroner.