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Productive EU solution to Chinese EVs: minimum prices instead of tariffs. (finance.yahoo.com)

submitted 1 week ago by humanspiral@lemmy.ca to c/economics@lemmy.ml

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Minimum prices protect EU's major auto nations from too much Chinese EV plants in new EU countries. There are still likely to be some, especially if they can sell below minimum price at least in home country.

Higher Chinese profits can be deployed into charging infrastructure, services, and more model imports. More EVs.

While tariffs in EU weren't meant to be prohibitive (no EU models are at full tariff rate), the new policy would be friendlier, likely for purposes of having China make friendly EU business policies.

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[–] Wanpieserino@lemm.ee 0 points 1 week ago (1 children)

So does this mean that the more expensive Chinese EVs will be sold at the same price in the EU as in China? Taking VAT and transport costs out of it.

[–] humanspiral@lemmy.ca 2 points 1 week ago

I'm not sure they are now. But there would be a tendency to mark them up for more profit instead.

The BYD dolphin is $23000 in Europe, but starts at $8000 in China. It is their highest end model, that they also add a ton of airbags to, to boost the cost/price. I'd assume that its "minimum price in each category". Dolphin is about size of fiat 500. This instead of just competing in $100k+ market.

End result is more Chinese profit, but hopefully means more EU investment too, or subsidized EVs elsewhere.