SAIC Motor disputes EU's anti-subsidy investigation and tariffs on Chinese EVs

05 July 2024

Leading Chinese automaker SAIC Motor Corp has announced it will formally request a hearing with the European Commission to challenge the additional tariffs imposed on Chinese electric vehicles. The company asserts that the EC's anti-subsidy investigation is riddled with errors and unfair practices, ultimately harming both SAIC and its European customers.

At the heart of the dispute is the EC's determination that SAIC received subsidies amounting to 37.6% on its EVs. This figure, SAIC argues, is based on several miscalculations and misrepresentations by the EC. For instance, the company claims the EC erroneously included subsidies intended for Chinese EV buyers as part of the subsidy rate for vehicles sold in the EU.

SAIC alleges the EC's investigation went beyond the scope of a typical probe by demanding commercially sensitive information, such as battery chemical formulations. The company also claims the EC ignored some of its submitted evidence and defenses, leading to inflated subsidy rates.

The Chinese automaker contends that its success in Europe, particularly with its MG brand, is due to its significant investments in research and development, not unfair subsidies. The company has reportedly poured nearly RMB 150 billion ($20.6 billion) into R&D over the past decade, amassing over 26,000 patents.

The additional tariffs, which went into provisional effect on July 4, come on top of the existing 10% import duty on Chinese EVs. These measures could significantly impact the price competitiveness of Chinese EVs in the European market, potentially hindering their sales growth and slowing down the region's transition to electric mobility.

SAIC Motor's decision to challenge the EC's ruling is a significant development in the ongoing trade dispute. The outcome of the hearing could have far-reaching implications for the future of Chinese EV exports to Europe and the broader global EV market.

Via