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Will global brands continue to use Chinese plants for European supply?

European brands show no signs of moving their sourcing away from China. By Ian Henry

Chinese-made cars are increasingly common on European roads; most of these are made by Chinese companies, notably BYD, Nio and the former UK marque MG. Analysis by PWC suggests that by 2025, Chinese imports into Europe could reach 800,000 a year and even with continued exports from Europe to China, Europe is likely to be a net importer of vehicles from China.  Many, if not most, of these imports are electric vehicles (EVs), reflecting China's domination in the battery supply sector.  The lack of free trade deals between China and the EU or the UK means that import tariffs are payable; and while most Chinese brands operate in the small and most price competitive segments, the addition of a 10% tariff at the port of entry, in turn leading to a 6-7% price rise at the point of sale, does not make Chinese-made cars uncompetitive.

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