German carmakers oppose punitive tariffs on Chinese electric cars

BERLIN: German car manufacturers are against the possible European punitive tariffs on the import of electric cars from China.

The German Association of the Automotive Industry (VDA) called for a willingness to engage in dialogue on both sides to avoid harming the sector's development.

"Anti-subsidy measures, such as additional tariffs, would not solve the challenges for the European and German automotive industry. On the contrary: The purpose of countervailing duties envisaged by the European Commission could quickly have a negative impact in the event of a trade conflict," VDA president Hildegard Müller told the Sunday edition of the Die Welt newspaper seen in advance by dpa.

According to Müller, a trade conflict would also jeopardize the transformation towards electromobility and digitalisation.

Since last autumn, the European Commission has been investigating whether electric cars in China are benefiting from illegal subsidies.

According to the commission, Chinese electric cars are normally around 20% cheaper than models built in the EU.

The anti-subsidy investigation could now lead to punitive tariffs being imposed.

A preliminary announcement by the commission is planned by June 5, the newspaper reported.

According to the Duisburg-based Centre Automotive Research, German car manufacturers sell 30%-40% of their output on the Chinese market.

In the event of European punitive tariffs, these manufacturers could therefore be the first target of possible Chinese countermeasures.