The European Union said state-owned SAIC Motors, the Chinese partner of General Motors and Volkswagen, failed to cooperate with EU authorities and did not provide them necessary documentation.
Last week, the company was slapped with a 36.3% additional tariff on its cars because the EU accused it of benefiting from “unfair subsidization” and undermining European competition. SAIC also manufactures the MG brand of cars.
The amount was a revision from an even higher 37.6% tariff, which the Chinese EV maker disputed after it was assigned in June. The additional tariff will be applied on top of an existing 10% duty, which applies to all EVs imported from China.
In comparison to SAIC, China’s largest EV maker BYD and Volvo parent Geely walked away with much lower tariffs. BYD, which temporarily dethroned Tesla as the world’s best-selling EV company earlier this year, was given a 17% tariff, while Geely saw a 19.3% tariff. Both carmakers saw small downward revisions last week.
Tesla, which also manufactures cars in China, received a 9% tariff because it benefits from fewer Chinese subsidies.
SAIC’s extra-harsh tariffs result from the company’s lack of cooperation with Brussels authorities. In a July report, the EU Commission found SAIC’s replies to a questionnaire to be “highly deficient,” missing key information, including the cost of production, information relating to purchases of main inputs, and related companies.
SAIC argued that the bloc asked them for too much information.
The company faced internal challenges when responding to the EU, too.
The EV maker lacked access to some of its own suppliers’ data and was unfamiliar with the required documentation, Bloomberg reported on Monday, citing people familiar with the company.
Representatives for SAIC did not immediately respond to a request for comment from Business Insider.
Tariffs in the EU are a big headache for Chinese EV manufacturers, which already face a 100% import duty in the US.
Europe is a significant market for Chinese players. In an August report, HSBC wrote that Chinese automakers’ share in the European EV market could rise from just over 6% in 2023 to 10.5% by 2030 — and nearly half of those sales could come from non-EU countries.
The tariffs are part of a prolonged diplomatic battle between the EU and China regarding trade, national security, and overproduction.
The EU accuses China of encouraging overproduction in varied industries, including the green sector, and of fueling Russia’s war against Ukraine. China says the bloc is being protectionist and is trying to curb its economic development.
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