China’s BYD, Saic’s MG undecided on EV price hikes due to tariffs: sources

CHINESE carmakers BYD and Saic subsidiary MG have not yet decided whether they will increase prices on electric vehicle (EV) sold in the European Union to offset the impact of additional duties, sources close to the two groups have told Reuters.

The sources said that there would be no decision before Jul 4 when the provisional duties take effect.

They declined to be identified because the information is confidential.

The companies did not immediately respond to a request for comment.

A spokesperson for Dacia, Renault’s low-cost brand whose electric Spring is imported from China, said that an announcement on its price was “not on the agenda”. It will be subject to a 21 per cent duty.

Tesla is the only carmaker to announce plans to increase prices – on its Model 3 – to compensate for the higher cost at European borders as a result of the tariffs.

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Analysts expect other manufacturers producing in China will pass on part of the extra cost to consumers.

Last week, the European Commission proposed tariffs of up to 38.1 per cent on EV imports from China despite Beijing’s protests, plunging trade ties to a new low and risking punitive action from the world’s second-largest economy.

MG faces tariffs of 38.1 per cent, on top of the current 10 per cent tariff, while for BYD the new tariffs amount to 17.4 per cent. REUTERS