The European Union will lower additional tariff rates proposed for battery-electric vehicles that Tesla and other automakers import from China, sources said.
Tesla's proposed tariff rate will drop to 7.8 percent from 9 percent. For BYD, there is no change to its 17 percent tariff. For Geely, the new rate would be 18.8 percent from a previous 19.3 percent.
A peak rate of 35.3 percent will apply to SAIC and other companies not cooperating with the EU's anti-subsidy investigation into EVs made in China.
The additional levies will be on top of the existing 10 percent duties that exporters from China already are subject to.
The EU is making the revisions due to new information that companies have provided, Bloomberg and Reuters reported.
China and the affected companies were given 10 days to submit their comments on the new tariffs and the European Commission has taken these into account to establish revised rates.
The Commission had already lowered tariffs in August for Tesla Model 3 sedans exported to Europe from the automaker's Shanghai factory to 9 percent from 20.8 percent. Tesla had requested a recalculation of its rate because it received less subsidies from the Chinese government compared with the country's EV makers.
Kerrigan Advisors’ proprietary annual OEM Survey of over 100 executives reveals that the majority of respondents are worried about the financial impact of Chinese automakers’ growing global market share, and most expect that the EV transition to be slower than expected. The survey also queried executives on their outlooks for dealership valuations and profitability, as well as their expectations for the future of dealer networks and facility requirements.
The rates could continue to be adjusted as discussions between the EU and relevant parties continue and as new information emerges, sources said.
The proposed final duties will be subject to a vote by the EU's 27 states.
The definitive rules are planned to apply after Oct. 30 and will be in force for five years unless a qualified majority of 15 EU members representing 65 percent of the EU population vote against. It is a high hurdle that is rarely reached, although this is a politically charged file.
Several countries, including Germany and Hungary, have voiced resistance to the new tariffs.
Bloomberg and Reuters contributed to this report
