According to Reuters, three sources said that the European Union rejected a proposal from the Chinese government to set the minimum price of electric cars imported from China at 30, 000 euros ($32946).
To avoid EU tariffs on it next month.
A month ago, the European Union also rejected the lowest offer from Chinese electric carmakers.
However, the European Commission also said it was prepared to reconsider other price commitments, including minimum prices and import quotas, as negotiations between China and the EU continued.
According to sources, the possible solution is to calculate a minimum price for each carmaker or even each model based on the size and mileage of the car.
One of the sources said the minimum price level of “35000 to 40000” euros could be a better standard for negotiations.
According to JATO Dynamics, the average price of electric cars in China last year was less than half that of Europe and the United States, thanks to a range of cost advantages, including access to cheap car raw materials and batteries from China.
In the first half of last year, for example, the average retail price of pure electric vehicles in China was about 32000 euros ($35126.
40), including models such as BYD Seagulls, which sell for less than 10000 euros.
BYD Seagull, a small electric car, plans to go on sale in Europe next year and is expected to be priced at just under 20000 euros.
BYD Seagull.
photo: BYD, by comparison, the average retail price of an all-electric car in Europe is 66000 euros, according to JATO.
Most of the lower-priced models (about 20000 euros) are not expected to be available until 2025 at the earliest, such as Volkswagen, which plans to launch models priced at 20000 euros in 2027.
Currently in the European market, Chinese automakers such as SAIC and BYD set the price of electric vehicles at just over 30000 euros, while in China’s home market, they will sell even lower.
This reflects both the flexibility of Chinese carmakers and the attractiveness of the European market.
When the EU rejected China’s minimum price proposal, it said it was not just about carmakers’ pricing of their electric cars made in China, but also about the subsidies they received in the production process and the impact of eliminating such subsidies.
At present, the time for China and the EU to negotiate an agreement to avoid tariffs is very limited.
Last week, the European Commission said it would impose tariffs of up to 45 per cent on Chinese-made electric vehicles for five years from October 31 unless the two sides agreed on alternatives to tariffs.
On Oct.
8, just days after EU member states voted to impose tariffs on Chinese-made electric cars, China imposed temporary anti-dumping measures on brandy imports from the European Union, which also dealt a blow to French brands such as Hennessy and Remy Martin.
China’s Ministry of Commerce said it was seeking to negotiate an alternative tariff through China and the EU, which would involve some form of “flexible pricing commitment”, but did not provide details.
Previous reports have not disclosed the details of the proposal for the China-EU negotiations.
China’s Ministry of Commerce and the European Commission did not immediately respond to requests for comment.
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