Geely and BYD entered a tax war with the EU!

China’s two largest automobile giants, Geely and BYD, have entered into an interesting tax war with the European Union (EU). These automotive giants will hold extra talks to oppose the EU’s temporary anti-dumping duties. Here are the details…

Geely and BYD will hold additional talks with the EU on tax increases

The EU has launched an anti-dumping investigation against Chinese automakers. As part of this investigation, it decided to impose provisional taxes on companies such as Geely, BYD and SAIC Motor. So how much tax came? 19.9% ​​tax for Geely, 17.4% tax for BYD and a full 37.6% tax for SAIC Motor. In other words, the EU does not want these giants to easily dominate the European market.

Geely and BYD received permission to hold additional talks with the EU to oppose this high tax increase. Geely will participate in these negotiations with the EU. BYD is expected to follow the same path. The purpose of these talks is to defend themselves against the taxes that the EU plans to impose and to ensure that these taxes are reduced. So, there will be a serious bargain on the table.

SAIC Motor stated that the EU requested much more commercial information from them than what is required as part of a normal investigation. They say they are being asked to share sensitive information, such as battery chemistry, and that these requests are higher than usual. They also state that the EU includes state incentives given for electric vehicles sold in its own country in its tax calculations. This makes things a little more complicated for Chinese manufacturers.

We look forward to seeing what Geely and BYD will do in these additional talks. They will do their best to defend themselves on the EU side and reduce tax increases. These developments are very important for the future of Chinese automobile manufacturers in the European market. Maybe after these negotiations, there will be a decrease in taxes and these giants will move more easily in the European market.

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