Connect with us

Hi, what are you looking for?

CleanTechnica
As a consequence of the current trade war, Tesla faces an extra 25% on top of the standard 15% general import duty when importing into China from the USA. That is 25% more than imported German cars and more than 50% over locally produced vehicles that are eligible for EV incentives.

Cars

Can Tesla Use EU Loophole To Export To China?

As a consequence of the current trade war, Tesla faces an extra 25% on top of the standard 15% general import duty when importing into China from the USA. That is 25% more than imported German cars and more than 50% over locally produced vehicles that are eligible for EV incentives.

As a consequence of the current trade war, Tesla faces an extra 25% on top of the standard 15% general import duty when importing into China from the USA. That is 25% more than imported German cars and more than 50% over locally produced vehicles that are eligible for EV incentives.

Tesla is speeding up the building of its Shanghai Gigafactory (GF3) to make a local Model 3, but that plant will not alleviate barriers to Model S & X imports.

Just like China, the European Union has a 25% import duty on cars from the USA. Tesla avoids this duty by producing the cars locally in its assembly plant in Tilburg, Netherlands. Originally, this was a simple reassembly of knock-down kits from Fremont. But over the years, it has evolved into a more normal assembly. At the moment, the plant is being extended, probably to build a local Model 3.

What Tesla needs is a comparable solution for China as it has for the EU tariffs. Preferably, that would be production within China, but it needs to at least be outside the USA. Could it be possible for Tesla to export the Models S & Model X from Tilburg, Netherlands? That would add some extra logistics costs but remove the 25% extra import duty, if the Chinese are willing to accept those Teslas as European cars instead of American cars.

I discussed this way of evading the China tariffs with some people a lot more knowledgeable than me. They thought that the Chinese ruling for this case was hard to predict. To get the Chinese to accept the cars assembled in Tilburg as Dutch exports would require some smart negotiations, which could very well be underway while you read this.

This should be a temporary solution, since the real solution is building an assembly plant beside GF3, where Model S & Model X can be assembled.

Local production that is more than reassembling a knock-down kit creates some new possibilities. Now that Tesla is becoming a larger carmaker, it should be looking into localized versions of its models. For cars in the price class of the S & X, the Chinese like long versions, putting more distance between the occupants and the chauffeur. For Europe, a hatchback/shooting brake version with more range for the Autobahn would be welcome.

There is still a lot of market to be conquered with the Model S & Model X, and Tesla should start with it sooner rather than later. Going all the way with this hypothetical solution in the Netherlands, when the temporary Dutch capacity for the Chinese S & X is no longer needed — after the Chinese assembly comes online — it would be perfect for localized European versions.

Photos by Kyle Field

 
 
Appreciate CleanTechnica’s originality? Consider becoming a CleanTechnica member, supporter, or ambassador — or a patron on Patreon.
 
Sign up for our free daily newsletter to never miss a story.
 
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

New CleanTechnica Podcasts

Written By

Grumpy old man. The best thing I did with my life was raising two kids. Only finished primary education, but when you don’t go to school, you have lots of time to read. I switched from accounting to software development and ended my career as system integrator and architect. My 2007 boss got two electric Lotus Elise cars to show policymakers the future direction of energy and transportation. And I have been looking to replace my diesel cars with electric vehicles ever since. And putting my money where my mouth is, I have bought Tesla shares. Intend to keep them until I can trade them for a Tesla car.

Comments

#1 most loved electric vehicle, solar energy, and battery news & analysis site in the world.

 

Support our work today!

Advertisement

Power CleanTechnica: $3/Month

Tesla News Solar News EV News Data Reports

Advertisement

EV Sales Charts, Graphs, & Stats

EV Press Releases

Advertisement

Our Electric Car Driver Report

30 Electric Car Benefits

Tesla Model 3 Video

Renewable Energy 101 In Depth

solar power facts

Tesla News

EV Reviews

Home Efficiency

You May Also Like

Cars

Thanks to a recent suggestion from a CleanTechnica reader, I’ve gone ahead and created a page that I’m putting in our sidebar and will...

Autonomous Vehicles

Welcome to China × Cleantech — January 2021 edition. Our China x Cleantech series covers top cleantech stories in China each month. Happy 牛 Year! I...

Cars

In a Car and Driver highway test, a Tesla Model Y went further than a VW ID.4. But there's a story behind those numbers.

Cars

In today’s example of “better late than never,” Volvo is doing its first over-the-air (OTA) update. Tesla has been doing these for almost a...

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.