BYD, the Chinese electric vehicle maker can manage the European Union’s additional tariffs on EVs from China—and may grab market share from more severely affected rivals.
BYD, the Chinese electric vehicle maker led by billionaire Wang Chuanfu, can manage the European Union’s additional tariffs on EVs from China, analysts say—and may grab market share from more severely affected rivals.
Shares of the dual-listed automaker surged as much as 8.8% in Hong Kong and 6% in Shenzhen on Thursday because the hike was significantly less than a previously expected 30%. The EU announced yesterday that BYD will have to pay an additional 17.4% levy on top of the existing 10% starting from next month.
The automaker, whose name stands for “Build Your Dreams,” was the least affected among Chinese EV companies targeted in an EU investigation. Citing factors such as the level of cooperation as EU officials looked into how state support and government subsidies might have helped Chinese EVs sell at low prices, the bloc decided to apply tariff hikes differently.
State-owned SAIC Motor, which owns the once iconic British brand MG, was the hardest hit, facing an extra duty of 38.1%. Billionaire Eric Li’s Geely, which owns the Swedish auto brand Volvo, will pay 20% more.
