Automotive industry in China

The European Union has warned it would slap additional tariffs of up to 38 percent on Chinese electric car imports from next month after an anti-subsidy probe, a move that risks provoking a bitter trade war.

Brussels angered Beijing by launching the investigation last year in a bid to defend European manufacturers in the face of a surge of cheaper Chinese imports.

The European Commission told automakers on Wednesday it would impose extra duties of up to 38.1% on imported Chinese electric cars from July, risking retaliation from Beijing which called the move protectionist.

European carmaker Stellantis on Tuesday said it had formed a joint venture with the Chinese electric vehicle startup Leapmotor that will begin selling EVs in nine European countries, including Greece, later this year.

Chinese carmaker Chery has not completely scrapped plans for an investment in Türkiye, one of the company's top executives has said.

Despite the strong sales numbers in the Turkish car market, Chery chose Spain to make its first investment in Europe which led to speculations the Chinese carmaker shelved investment plans for Türkiye.

Data from a Japanese auto industry association show that China overtook Japan as the world's largest vehicle exporter last year.

The Japan Automobile Manufacturers Association reported Japan exported 4.42 million vehicles in 2023, up 16 percent from a year earlier, while domestic auto sales totaled nearly 4.78 million vehicles.

European Commission investigators are to inspect Chinese automakers in the coming weeks as part of a probe into whether to impose punitive tariffs to protect European electric vehicle (EV) makers, three people involved in the process said.

Some 600 cars imported from China are stuck at Turkish customs as new regulations regarding electric vehicles came into force at the end of last year.

Industry and Technology Minister Fatih Kacır has called on Chinese carmaker Chery to invest in Türkiye.

He visited the production facilities of Chery, China's largest automotive exporter since 2012, Kacır wrote on X, formerly Twitter, on Dec. 21.

Chinese carmakers are fast increasing their share in the Turkish market, but subsidies the Chinese companies receive from their government may lead to unfair competition, warns Baran Çelik, the board chair of the Uludağ Automotive Industry Exporters' Association (OİB).

The combined sales of passenger cars and light commercial vehicles (LCV) increased by 55.4 percent in October from a year ago to 101,367, data from the Automotive Distributors' and Mobility Association (ODMD) have shown.

In the previous month, sales were up 55.9 percent year-on-year to around 97,000 units.