Chinese EV makers bypass EU and US tariff roadblock by turning towards Africa

Increased tariffs on Chinese electric vehicles by Europe and the US have left carmakers looking for other markets, including Africa

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As the EU announces a tariff increase of up to 38 per cent for Chinese electric vehicles, carmakers are now looking further afield, including to Africa, for new markets. Photo: AFP

Published: 4:06pm, 5 Jul 2024

The move by Europe and the US to impose higher tariffs on Chinese electric vehicles (EVs) has been labelled no more than “a temporary setback” by an executive of a Chinese EV maker.

Neta Auto vice-president Zhou Jiang also said that the tariffs were instead pushing Chinese companies to search for alternative markets, including Africa.

He said Neta considers the increased tariffs on Chinese EVs and batteries to be “protectionist policies”.

But while he was confident the tariff rise was just a bump in the road, he said if it continued for too long, it could cause more problems.

“If the policies last long, that would have a negative effect on consumers’ experience with product selection and our technology development,” he said.

In the meantime, Zhou said Chinese EV brands are exploring other overseas markets, highlighted by his visit to Kenya last week to open Neta Auto’s first African store – marking “a new phase of EVs entering the African market”.

In an interview on the sidelines of the opening, Zhou said countries in Africa, Southeast Asia, South America and some European markets are all on the radar of Chinese EV brands.