Previously, VCPost reported a plan to impose tariffs as high as 38% on electric vehicle (EV) imports from China into the European Union (EU). However, after negotiations or considerations, the final decision was to set the tariff at a lower rate of 17.4%.

A recent Electrek report has revealed that BYD, a leading Chinese electric vehicle manufacturer, is still generating higher profits on some models sold in the EU than in China. 

READ MORE: EU to Impose Up to 38% Tariffs on Chinese Electric Vehicles

BYD in the Europoean Market

BYD (Build Your Dreams) is a Chinese multinational company specializing in electric vehicles, batteries, and renewable energy solutions. As a major player in the Chinese EV market, BYD has expanded its presence globally, including entering the European market with models like the Atto 3, Dolphin, Han, Seal, and Tang.

The new tariff directly affects BYD, increasing the cost of importing its EVs into the EU and potentially impacting its pricing strategy and market competitiveness in Europe.

Surprisingly, BYD's Seal U earns around €14,300 ($15,200) per unit in the EU versus €1,300 ($1,388) in China, reflecting a price differential with European models selling for nearly double. 

Even with tariffs imposed on Chinese imports, which currently stand at 17.4%, higher tariffs in the 40-50% range would be needed to reduce BYD's market presence in Europe. 

Despite this, BYD's CEO, Wang Chuanfu, expresses confidence and plans to open BYD's first European factory later this year.

READ NEXT: [UPDATE] Chinese EV Shares Jump Following EU's New Import Tariffs