Geely Holding Group, the China Association of Automobile Manufacturers (CAAM), Chery Automobile and BYD separately issued statements on October 14 welcoming and supporting the consensus reached in China-EU consultations on hybrid and electric vehicle trade. The statements followed the second plenary session of the China-EU trade and investment consultation mechanism held in Beijing, where the two sides reached a series of pragmatic outcomes.
China's Ministry of Commerce said the two sides confirmed three basic principles on hybrid vehicle trade: respecting facts, non-discrimination, and compliance. Cui Dongshu, secretary-general of the China Passenger Car Association, said the negotiated arrangement replaces the blunt instrument of additional tariffs and gives Chinese carmakers stable expectations in the EU market. He estimated China's plug-in hybrid exports to the EU will approach 800,000 units this year and may retreat next year under the new arrangement, urging companies to accelerate localized production in Europe.
Separately, BYD executive vice president Stella Li said at the Paris show that the company will invest heavily in European manufacturing, with France now on the candidate list for a new plant. BYD's first European passenger-car factory in Hungary is scheduled to begin large-scale production in the fourth quarter of this year, and the company plans a second and third vehicle plant plus a battery factory in Europe.
Source: National Business Daily; Ministry of Commerce
