Car industry expects more expensive electric cars

Worse competition and more expensive electric cars are likely to be the consequence of tariffs on China-made electric vehicles, according to several Swedish car organisations.

» Updated: July 16 2024

» Published: June 12 2024

Car industry expects more expensive electric cars
Photo: Jessica Gow/TT

Poorer competition and more expensive electric cars are likely to be the consequence of tariffs on Chinese-made electric vehicles, according to several Swedish car organisations.

Electric cars manufactured in China will become significantly more expensive, says Mattias Bergman, CEO of the industry organisation Mobility Sweden.

Other electric cars will also become more expensive as competition decreases, according to Bergman.

This will reduce supply. And thereby also slow down the pace of electrification, he continues.

Carl-Erik Stjernvall, technical expert and sustainability manager at the car consumer organisation M, makes the same analysis.

It will simply become more expensive, whether you buy or privately lease, he says.

Chinese cars often cheap

The electric car market has already taken a significant hit from higher interest rates and the abolished climate bonus. Private individuals have almost stopped buying electric cars.

And the cheapest cars are mainly the Chinese ones, says Carl-Erik Stjernvall.

Mattias Bergman is strongly critical of increased Chinese tariffs on electric cars, for several reasons. Even European car brands with manufacturing in China will get tariffs on the cars imported to the EU.

It's essential to remember that this is not protectionism against Chinese companies, but against electric cars manufactured in China, says Mattias Bergman.

Does not protect

The consequence will likely be, apart from an increased trade war, that more car manufacturers will move production to Europe. And those who cannot compete will be knocked out. Instead of tariffs, the EU should focus on strengthening competitiveness with research and regulatory simplification, according to Bergman.

If you think you can protect European industry by setting up protectionist tariffs, we won't succeed, says Mattias Bergman and continues:

What will happen now with this type of protectionist tariffs is that manufacturers with competitive cars will set up production in the EU earlier than planned.

The consumer pays

The Swedish government will now analyse the investigation more in-depth.

We are generally sceptical of tariffs. It means that someone has to pay them, and it will be the consumer sooner or later, says Foreign Trade Minister Johan Forssell (M).

According to Forssell, they want to know if the Commission has exhausted other avenues that may exist.

Then we have also said that we do not rule out the possibility of introducing different measures when not competing on equal terms.

But there are also other types of measures than tariffs, he adds.

Tags

TTT
By TT - Translated and adapted by Sweden Herald under license from TT

More news

Skistar Relocates Guests Due to
1 MIN READ

Skistar Relocates Guests Due to Snow Shortage in Swedish Mountains

Netflix Surpasses Market Forecasts with
1 MIN READ

Netflix Surpasses Market Forecasts with Strong Quarterly Earnings

United Health's Sharp Decline Weighs
1 MIN READ

United Health's Sharp Decline Weighs on Wall Street Indices

Civil Servant Strike Averted as
2 MIN READ

Civil Servant Strike Averted as New Agreements Reached

IMF Predicts Global Economy to
1 MIN READ

IMF Predicts Global Economy to Sidestep Recession Despite Trade Strains

Judge Rules Google Maintains Illegal
1 MIN READ

Judge Rules Google Maintains Illegal Monopoly in Digital Advertising

Electricians Secure New Deal with
1 MIN READ

Electricians Secure New Deal with Pay Raises and Shorter Hours

US Economy Shows New Signs
2 MIN READ

US Economy Shows New Signs of Weakness with Housing and Manufacturing Slumps

Jonathan Anderson Named Dior Menswear
1 MIN READ

Jonathan Anderson Named Dior Menswear Creative Director

Eli Lilly Shares Surge After
1 MIN READ

Eli Lilly Shares Surge After Promising Weight Loss Pill Results

ECB Lowers Rates Again, More
3 MIN READ

ECB Lowers Rates Again, More Cuts Expected This Year

Study Reveals Long-Term Economic Strain
1 MIN READ

Study Reveals Long-Term Economic Strain for Russia in Ukraine Conflict

Trump Claims He Can Oust
2 MIN READ

Trump Claims He Can Oust Fed Chair Powell Despite Lacking Authority

Hermes Increases U.S. Prices to
1 MIN READ

Hermes Increases U.S. Prices to Offset Tariff Impact

Trump Administration Halts New York
1 MIN READ

Trump Administration Halts New York Offshore Wind Farm Construction

Genre image
1 MIN READ

Pernod Ricard Sales Dip Due to Cognac Challenges in China

TSMC Reports Strong Q1 Results
1 MIN READ

TSMC Reports Strong Q1 Results with 42% Sales Increase

ABB Gains Despite Downturn in
1 MIN READ

ABB Gains Despite Downturn in Stockholm Stock Exchange

ABB Boosts Profit, Plans Robotics
2 MIN READ

ABB Boosts Profit, Plans Robotics Division Spin-Off

Asian Markets Rise on Positive
1 MIN READ

Asian Markets Rise on Positive US-Japan Trade Talks

SBAB Predicts Decline in Mortgage
1 MIN READ

SBAB Predicts Decline in Mortgage Rates as Repo Rate Expected to Drop

Trump Reports 'Great Progress' in
2 MIN READ

Trump Reports 'Great Progress' in Trade Talks with Japan

Nvidia's Warning Sends Wall Street
1 MIN READ

Nvidia's Warning Sends Wall Street Indices Tumbling

EU Launches Safety Sweep to
1 MIN READ

EU Launches Safety Sweep to Tackle Dangerous Products Online

WTO Report: Trump's Tariffs Could
1 MIN READ

WTO Report: Trump's Tariffs Could Cut Global Trade by 1.5% by 2025

Record Restaurant Bankruptcies in March
1 MIN READ

Record Restaurant Bankruptcies in March Highlight Industry Struggles

US Retail Sales Surge in
1 MIN READ

US Retail Sales Surge in March, Driven by Car Purchases

Northvolt's Acting CEO Pia Aaltonen-Forsell
1 MIN READ

Northvolt's Acting CEO Pia Aaltonen-Forsell Steps Down

California Challenges Trump's Tariffs in
1 MIN READ

California Challenges Trump's Tariffs in Court, Citing Illegality

Social Democrats Propose Boost in
2 MIN READ

Social Democrats Propose Boost in Support for Single Parents

Autoliv Navigates Trade Tariffs with
3 MIN READ

Autoliv Navigates Trade Tariffs with Strong First-Quarter Performance

Honda Shifts Civic Hybrid Production
1 MIN READ

Honda Shifts Civic Hybrid Production to Indiana Factory

Sandvik Prepares to Boost U.S.
2 MIN READ

Sandvik Prepares to Boost U.S. Production Amid Trade Uncertainty

Viscaria's Copper Mine Clears Final
1 MIN READ

Viscaria's Copper Mine Clears Final Legal Hurdle, Prepares for Reopening

Swedish Industry Leaders Eye Co-Ownership
2 MIN READ

Swedish Industry Leaders Eye Co-Ownership in New Nuclear Venture

Anna-Karin Hatt's Role in Alecta's
3 MIN READ

Anna-Karin Hatt's Role in Alecta's Criticized Investments Under Scrutiny