The EU's temporary tax on Chinese electric vehicles began to be implemented on July 5, but the game between China and the EU has not ended.
Last week, under pressure from China, the EU symbolically solicited the opinions of member states. The EU said that more than a dozen of its member states supported the new tariff measures, only four opposed them, and another 11 abstained.
According to relevant EU rules, at least 15 countries need to vote against it and the combined population of these countries must exceed 65% of the EU's total population, so that the new tariff policy can be revoked.
On July 4, 2024 local time, in Rayong Province, Thailand, BYD's new factory produced the first model of the marine vehicle series, BYD Dolphin.
In this regard, the China Chamber of Commerce for Import and Export of Mechanical and Electrical Products (CCCME) is authorized by 12 Chinese electric vehicle companies, including 3 Chinese sample companies, to represent the industry in a no-damage defense. On July 18, the Chamber of Commerce for Mechanical and Electrical Engineering participated in a hearing held at the European Commission to explain China's views on behalf of China's electric vehicle industry.
The Mechanical and Electrical Chamber of Commerce said at the hearing that the EU's preliminary assessment did not comply with EU and World Trade Organization rules.
Shi Yonghong, vice president of the Chamber of Commerce for Mechanical and Electrical Machinery, pointed out that the European Commission's sampling of Chinese and EU companies does not comply with the EU countervailing regulations. The information required by Chinese exporters is very broad and harsh, and the pre-determined conclusions are very biased. At the same time, the European Commission violated its affirmative evidence and objective review obligations in price comparisons, and did not conduct an objective analysis of EU industrial damage indicators. He said that the European Commission's investigation seriously lacked transparency, which seriously affected the objectivity and fairness of the ruling.
Shi Yonghong said that the unreasonable determination made by the European Commission is not conducive to the general direction and main tone of the development of China-EU relations, nor is it in line with the overall interests of China-EU enterprises and the EU. The development and growth of the EU and China's electric vehicle industries lies in cooperation rather than conflict. The Chinese industry remains open and hopeful that this investigation will achieve a balanced solution.
The European Commission argued that it was not trying to shut out Chinese electric vehicles, but that measures needed to be taken to ensure a level playing field.
On July 5, the European Union imposed temporary tariffs of 17.4% to 37.6% on Chinese-made electric vehicles, including models made in China by Chinese brands BYD, Geely and SAIC, as well as Western manufacturers such as Tesla and BMW.
Shi Yonghong revealed that the current negotiation goal is to lower the average tariff below 20%. He said that members of the Neutral Plan are very interested. After all, unreasonable tariffs will hinder Chinese car and battery manufacturers from investing in Europe, which the latter does not want to see.
At present, there is no final conclusion on the EU's electric vehicle tariffs on China.
After the EU encountered obstacles, Chinese car companies began to look for markets that were easier to penetrate in the short term, such as Thailand, a major automobile town in Southeast Asia, which has preferential policies.
In July, BYD and GAC Aian's Thai factories have opened respectively, and Changan Automobile's Thai factory will also be completed in March 2025. More Chinese car companies have expressed interest in the Thai market. So can Thailand really become a new destination for Chinese car companies to go overseas?
Data from the Passenger Transport Association shows that the top five countries with total domestic new energy vehicle exports from January to June 2024 are: Brazil 133185 vehicles, Belgium 129832 vehicles, the United Kingdom 76036 vehicles, Thailand 62043 vehicles, and the Philippines 51549 vehicles. Thailand ranks fourth and is one of the priority markets for going to sea. However, the top five countries with an increase in China's automobile exports from January to June were Brazil, Mexico, United Arab Emirates, South Korea, and Indonesia. This shows that Thailand's position is not as solid as expected in terms of the export prospects of new energy vehicles, and it seems to be being caught up by countries such as Brazil.
Even if they are on the right track in the Thai market, Chinese car companies are facing some "code of conduct" levels of acclimatization.
BYD's continuous price cuts in the Thai market have been complained by consumers, and local authorities are investigating this.
Perhaps to calm consumer anger, BYD's Thai distributor Rever Automotive announced this week that existing BYD customers will receive up to 50000 baht in cash back when purchasing ATTO 3 or BYD Seal models from July 18 to the end of August, a campaign that will continue until March 2025.
But the dealer group, which has more than 100 outlets in Thailand, does not admit it is a "compensation plan" and instead said in a statement that it is a promotion for old customers. This means that BYD has not responded to or apologized for complaints from Thai users about price cuts.
Passakorn ThapMongkol, a senior official with the Consumer Protection Council of Thailand, said there have been more than 100 complaints about BYD's price cuts in Thailand.
Earlier, Thai Prime Minister Srettha Thavisin asked BYD Chairman Wang Chuanfu to ensure Thai consumers were protected, when Wang assured Srettha Thavisin that its future pricing would be "appropriate."
Under the changes in trade policies of various countries, Chinese automobile companies need to find stability in their overseas business.
The latest trend shown in the export data of the Passenger Federation is that in 2024, the export of Chinese car companies to European countries such as Belgium and the United Kingdom and Southeast Asia such as Brazil and Thailand are the two main directions, with Brazil having a stronger momentum than Thailand. Exports from markets such as Spain and France are weak.