The head of Mercedes called on the EU to abandon punitive tariffs on Chinese electric cars

“Mercedes-Benz CEO Ola Kellenius calls on EU leaders to abandon a protectionist approach to the car market in the form of punitive tariffs on Chinese electric cars.”, — write: epravda.com.ua

Mercedes-Benz CEO Ola Kellenius calls on EU leaders to abandon a protectionist approach to the car market in the form of punitive tariffs on Chinese electric cars. This is reported by the Financial Times. In October 2024, the European Union raised tariffs on imports of Chinese electric vehicles to 45%. This came after a sharp surge in sales, with the EU claiming that Chinese automakers were receiving unfair subsidies. Beijing responded with anti-dumping tariffs on cognac and investigations into pork and dairy products. Callenius said the tariffs would hurt the industry and Brussels should compromise with Beijing on a deal to eliminate them, adding that China has become an integral part of the global automotive supply chain, including raw materials, advanced chips and components.Advertisement: “No one denies the fact that a level playing field is a legitimate debate. The question is, what tool do you use? Don’t accelerate protectionism, because we have something to lose,” he said Kellenius in an interview with FT. The EU should encourage Chinese automakers to open more factories in the bloc as part of a deal to eliminate punitive tariffs on imported Chinese electric cars, according to the head of Mercedes-Benz. German carmakers have been the most vocal in their opposition to the EU’s protectionist measures, as they fear retaliatory moves from Beijing. They have also tried to compete with more affordable and advanced Chinese electric cars from companies like BYD.Advertisement: A fifth of Mercedes-Benz is owned by Geely and BAIC, which is controlled by the PRC. The automaker also relies on the Chinese market, which accounts for about 30 percent of its global sales. We will remind: At BYD Co. and MG SAIC Motor Corp. accounted for 7.4% of electric vehicle registrations across the EU in November, compared to 8.2% in October. This is the lowest figure since March.