How EU’s New Rules Could Make Electric Cars More Expensive – Impact on Consumers and Manufacturers

2023-11-10 20:27:25

The EU sees itself as a pioneer for climate protection and clean cars!

But when it comes to electric vehicles, Brussels could deter many buyers in the future. The reason is new rules that are due to come into force at the turn of the year. And make electric cars massively more expensive.

▶︎ From 2024, a tariff of ten percent will come into force on electric vehicles that are imported from Great Britain or built with many British parts (e.g. battery). This is what the new trading rules (result of Brexit) provide for.

Economics Minister Robert Habeck (54, Greens) wants to prevent a new tariff on imported electric cars

Photo: Britta Pedersen/dpa

The worry: Manufacturers will add tariffs to prices.

▶︎ Another EU regulation also stipulates that from 2024 at least 45 percent of the value of an electric car must be manufactured with parts from the EU or Great Britain.

Goal: The EU wants to become more independent from Asia, especially when it comes to batteries. Because batteries usually make up 40 percent of the value of electric cars.

The hope: There will be more battery production in Europe in the future (BMW recently opened a factory). And these batteries are then installed in the electric cars.

But this can also increase the prices for electric cars, experts warn.

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Economics Minister Robert Habeck (54, Greens) is already alarmed. According to “FAZ”, he sent a letter to the EU Commission asking it to postpone the introduction of customs duties by three years.

According to the Association of European Car Manufacturers (ACEA), a tariff would cause additional costs of up to four billion euros. According to ACEA, manufacturing could also suffer: European production could be reduced by 500,000 vehicles from 2024 to 2026. The British car association SMMT determined that European vehicles subject to customs costs would be around 4,000 euros more expensive.

An electric car from the US Tesla brand at a charging station

Photo: picture alliance / Jochen Tack

The CDU is also horrified. She warns that electric cars will become unaffordable.

CDU transport expert Thomas Bareiß (48) to BILD: “The current letter from Economics Minister Habeck to the EU is tantamount to an oath of disclosure. The damage to Germany and our successful auto industry is huge.”

“It is already clear today that electromobility will be significantly more expensive than some lobby groups claim,” says Bareiß. “The car itself, the ongoing electricity costs and now the tariff increase on top of that make the switch increasingly difficult. The traffic light government’s goal of 15 million electric cars can no longer be achieved.”

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