The head of Mercedes-Benz called on the EU to reduce import duties on electric vehicles from China
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Mercedes-Benz Group CEO Ola Källenius has called on the European Union to reduce import duties on Chinese electric vehicles instead of trying to protect European manufacturers.
“Don’t raise duties. I am a supporter of the opposite approach, I think we need to do the opposite: take the tariffs that we have and reduce them,” Mr. Kallenius said in an interview Financial Times.
Last September, the European Commission began investigation regarding Chinese electric vehicle manufacturers, and in October the regulator launched procedure to protect the EU market from unfair competition from Chinese manufacturers. As stated in statement EC, the regulator has collected enough information to claim that the import of electric vehicles from China is carried out through hidden subsidies received by Chinese automakers from their government. This, European authorities say, allows Chinese companies to sell electric vehicles at significantly lower prices than their European competitors, undermining the “already vulnerable” European car industry.
Currently, Chinese electric cars are subject to a 10 percent tariff. European automakers pay a 15% tax on exports to China, and therefore try to produce electric cars for the Chinese market locally. European authorities are now considering increasing import duties for Chinese electric vehicles.
“We didn’t ask for this. We as companies don’t ask for protection, and I believe the best Chinese companies don’t ask for protection. “They want to compete in the world, just like everyone else,” said the head of Mercedes-Benz. “It was the opening of markets that led to increased prosperity, especially in the case of the economic miracle in China, which lifted hundreds of millions of people out of poverty.”
China is one of the main markets for Mercedes-Benz. It accounts for more than a third of the concern’s cars sold.
Why companies are reducing car prices – in the Kommersant FM article “Car dealers have to be generous”.
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