Chinese electric vehicles face possible extra EU tariff hit

And the shipments are not expected to slow, either, Schmidt said. Vehicle shipping rates are at an all-time high, but Chinese brands are launching their own shipping vessels to continue exporting to the European market.

BYD’s first vessel — the BYD Explorer No. 1, which can carry 7,000 cars — is en route to the EU and is expected to dock in Spain by Saturday.

Apart from increased tariffs, Chinese EV makers could see more competition next year as the EU’s newest emission targets come online. Automakers will have to reduce their emissions by 15 percent compared to a baseline established in 2021, meaning they will need to sell more all-electric models.

European carmakers are also moving into EVs, but with offerings that are more expensive and often less technologically innovative than those made by Chinese companies.

Several European carmakers are launching new models next year to coincide with the emissions regulation, which Schmidt says will help keep Chinese EV market share steady at 12 percent.

Beijing is hoping to find a negotiated solution with Brussels that would avert the duties altogether. So far, these talks have not been going very well, with the Chinese side unwilling to acknowledge the EU’s point of view that it unfairly subsidizes the sector along the whole production chain — from lithium refining to shipping.

Chinese export associations, meanwhile, argue the EU is losing its attractiveness as an investment destination.

This article has been updated.