S&P Global: Chinese auto manufacturers are able to cope with the EU's temporary tariffs.

AASTOCKS ·  Jun 17 16:43

S&P Global pointed out that the Chinese auto manufacturers it covers can cope with the temporary tariffs on Chinese electric vehicles (BEVs) imported by the European Union (EU) because they have smaller exports of electric vehicles to Europe. It is believed that they can cope with the tariffs increasing up to 38.1% on the existing 10% tariff starting next month.

However, S&P Global credit analyst Stephen Chan believes that the temporary tariffs may curb the growth of Chinese electric vehicle exports to Europe. For example, last year, the sales volume of Chinese electric vehicles exported to Europe increased by over 30%, and electric vehicles imported from China accounted for over 20% of the total sales volume in Europe. However, the overall impact is limited, mainly because Chinese electric vehicles exported to Europe last year accounted for less than 10% of the total export volume of Chinese automobiles.

S&P believes that among the affected auto manufacturers, Tesla (TSLA.US) has the biggest exposure, as its strategic focus is on producing pure electric vehicles in China.

The translation is provided by third-party software.

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