China’s EV industry faces double blow from EU export quota, VAT rebate cut
China’s electric vehicle (EV) makers have been hit with a double blow as both Beijing and Brussels introduce measures that will affect their exports, leading analysts to revise down their earnings forecasts for the industry. The twin measures – combined with a sales decline in China’s domestic market – could create a “do-or-die moment” for some of the country’s 50-odd EV makers, ramping up…
China's electric vehicle (EV) manufacturers face a dual challenge as both China and the European Union impose new trade measures that could significantly impact their earnings. The EU has allocated a quota for Chinese-made hybrid vehicle imports, while China has cut its value-added tax (VAT) rebate for exporting electric cars. Analysts predict that these policies will trigger a decline in revenue for Chinese EV makers, with some companies seeing a substantial impact on their export growth.
The combined effect of the export quota and reduced VAT rebate is expected to create a "do-or-die moment" for some 50 EV manufacturers in China.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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