Investing.com – The European Union imposed non permanent import tariffs on SAIC Motor this week that had been considerably larger than anticipated, with analysts at Morgan Stanley saying it might be a “vital setback” for the Chinese language automaker.
SAIC Group imposes a 38% import tariff on all new vitality automobiles exported to the EU, the best amongst its friends. The State Administration for Trade and Commerce had beforehand anticipated tariffs to be 20%.
The tariffs, introduced earlier this week, got here amid issues from EU lawmakers about elevated competitors from Chinese language electrical car makers for native automakers.
The tariffs will take impact on July 4, however a closing resolution on their imposition and measurement won’t be made till November.
Microsoft analysts mentioned that whereas the choice was a serious setback for SAIC, they nonetheless anticipated the corporate to take steps to offset its influence. The corporate will export 80,000 to 100,000 new vitality automobiles to the EU in 2023 as a consequence of rising demand for its MG model.
MS analysts additionally mentioned the corporate had room to defend itself till November.
Chinese language media reported that the State Administration for Trade and Commerce was “deeply upset” by the tariffs and that negotiations with the EU might be tough for a corporation.
SAIC Motor’s Shanghai shares fell 1.6% on Thursday. MS gave the inventory an obese place with a goal worth of 17.50 yuan, a rise of practically 14% from the present stage.
A number of of SAIC’s Chinese language friends are topic to import tariffs starting from 17% to 38%. BYD (Shenzhen:) has the bottom tariffs amongst its friends.
