"Global markets are now flooded with cheaper Chinese electric cars, and their price is kept artificially low by huge state subsidies," EC President Ursula von der Leyen said in her annual State of the Union address yesterday. "We are launching an anti-subsidy investigation into electric vehicles coming from China," she added.

Europe is one of the main destinations for China's EVs. Last year, China exported 545,000 electric cars to Europe, accounting for 48 percent of the country's total EV exports.About 8 percent of all EVs sold in Europe this year were of Chinese brands, up from 6 percent last year and 4 percent in 2021, according to data from automotive consultancy firm Inovev.

Based on the current export volume of new energy vehicles from Chinese companies to the European Union, SAIC Motor MG is likely to be the most affected by the anti-subsidy investigation. In the first eight months of this year, SAIC Motor MG sold 135,000 vehicles in Europe, with a year-on-year growth rate of 148%. The main selling model, MG4, has accumulated sales of over 40,000 vehicles in Europe, making it the best-selling pure electric compact car in Europe.

"This shows that Chinese EVs are relatively competitive, and further measures may be taken by raising tariffs,” said Cui Dongshu, secretary general of the China Passenger Car Association." In the short term, the investigation will not significantly impact China's EVs, but if tariffs are raised, this will definitely restrict China's EV exports," Cui noted.

Article source: Yicai, Beijing Daily