On June 14, Guolong News reported that the EU recently announced a temporary anti-subsidy tariff of up to 38.1% on imported electric vehicles from China, which is higher than the market expectation of 25%. Morgan Stanley said that not all car manufacturers may be able to maintain price competitiveness, and estimated that Chinese car manufacturers may need to increase their prices by 15% to 30% to cope with the tariff. In a report, Morgan Stanley said that it had learned from some domestic car manufacturers that they plan to pass on some of the additional tariff costs to customers to maintain profitability. As the tariff mainly targets pure electric vehicles, Morgan Stanley believes that more domestically produced plug-in hybrid electric vehicles (PHEVs) from China may enter Europe, which is good news for brands such as BYD, Lynk & Co, and Volvo. The bank believes that the EU's tariff hike is unlikely to stop the development of electric vehicles in China, but Chinese car manufacturers accelerating their localization plans will be the key.