Shares of Geely Auto soared 6.77% on Monday morning, leading a broader rally among Chinese electric vehicle (EV) makers. This surge was driven by the European Union's decision to impose tariffs on China-made EVs, which is not expected to trigger immediate price changes.
The EU's plans to impose tariffs on Chinese EVs, which won the backing of a sufficient number of member states on Friday, leave the door open for negotiations, according to a senior French diplomat. This decision has provided relief to Chinese EV manufacturers, as they can maintain their prices unchanged in key European markets like France and Italy until the end of this year.
Notably, the French unit of SAIC's MG Motor said on Friday that the EU decision would not affect prices of its EVs in France this year, regardless of the outcome of the vote. Similarly, Chinese EV giant BYD is also expected to keep its prices unchanged in Italy until the end of 2024, according to a source. By maintaining their current pricing, Chinese EV makers can preserve their competitiveness in the European market until the end of the year, providing them with a temporary reprieve from the potential impact of tariffs.
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