Tesla and BMW join Chinese carmakers BYD, Geely and SAIC in taking EU to court over EV tariffs

Automakers are pushing back against the application of the tariffs imposed by the European Union on Chinese-built electric vehicles, which came into effect in late October year. Not surprisingly, the first action came from Chinese companies, with BYD, Geely and SAIC challenging the EU’s import tariffs at the Court of Justice of the European Union (CJEU) last week.

Two other non-Chinese carmakers followed suit, with Tesla and BMW also challenging the levies by taking things to court, AFP reports. The complaints by the five manufacturers were filed with the general court, the lower CJEU chamber.

While no details were provided with the filing, the European Commission – which oversees EU trade policy – says they concerned the EU’s new customs duties. According to a spokesman, the EC said it has noted these cases and that it looks forward to defending itself in court.

In a statement, BMW – which has firmly been against the tariffs – said the duties “do not strengthen the competitiveness of European manufacturers” and it had filed the lawsuit seeking an annulment of the regulation in order to protect its interests.

“The countervailing duties harm the business model of globally active companies, they limit the supply of e-cars to European customers and can therefore even slow down decarbonisation in the transport sector,” the German automaker said.

The tariffs, which go as high as 45.4%, differ depending on the automaker. For BYD, it is 17%, while for Geely it is 18.8% and 35.3% for state-owned SAIC. When factored in, the EU’s standard 10% vehicle import duty pushes it to 27%, 28.8% amd 45.3% respectively for the three automakers. Other companies manufacturing EVs in China, including BMW, are subject to a 20.7% duty, while the rate for Tesla is 7.8% on top of the base 10%.

The EC said the extra tariffs are required to counter what it says are unfair government subsidies granted by the Chinese government to domestic automakers, enabling them to undercut rivals in Europe on price. Beijing has consistently denied its industrial policies are unfair and has lodged a complaint with the World Trade Organization (WTO) about the EU tariffs.

The German government was one of five EU member states that opposed the measures, fearing retaliation against its own manufacturers. The country’s automotive flagships – which includes BMW – are strongly established in China, producing certain models not just for China but also for the European market.

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