Since July 1, Chinese companies have been forced to go through tariffs imposed by the European Union when importing their electric vehicles. BYD is one of the brands least affected by this decision. Active cooperation with Europe is making efforts to develop its own cars, but the Asian firm still wants to pay less.

Right now, BYD pays 27.4% of its imports (17.4% countervailing duty and 10% normal tariff), figures that are far from the 47.6% that the SAIC company has to pay, but they still want to avoid having to pay these taxes at all costs in order to be able to comply with your prices. To this end, Turkey is about to sign a second BYD facility that will allow it to bypass the countervailing duties mentioned above.

If you can’t beat them, join them

Thank you for all we know Bloomberg, Cost of the factory BYD plans to open in Turkey It will reach 1 billion dollarsThis is an investment that could be extremely beneficial for the company, considering the cost savings that imports to Europe would provide, and that Xiaomi could also consider.

Let’s remember that Xiaomi SU7 is currently only available on the Chinese market, but the brand’s intention is to expand to Europe and many other countries in the next few years after seeing the tremendous success of the model. The main problem that Xiaomi may face in reaching our market is that, despite the fact that the device has a really attractive price in China, competitive advantage may disappear completely.

However, it seems that the brand is in the process of full expansion and this move could certainly be interesting. start building more factories to increase production Of course, we are not talking about a small investment, but considering the almost 50% taxes you can save when importing your vehicles, setting the price in Europe can be really interesting.

For now, this type of move seems like a loophole of sorts that exists for brands to bypass such measures, but we don’t know if it will happen later on. Europe will take action to continue protecting local producersWe’ll see how all this plays out, but there’s no doubt that this could be an extremely interesting move that Xiaomi could take good note of.

via | Bloomberg

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