Chinese manufacturers sell their electric cars to us at a 100 percent price premium.Image: Shutterstock
The EU wants to protect its car industry with minimum prices for subsidized electric cars from the Far East. The punitive tariffs for Chinese electric vehicles will no longer apply. But the feared danger of dumping is a phantom.
Jan 17, 2026, 6:18 p.mJan 17, 2026, 6:18 p.m
Markus Abrahamczyk / t-online
Brussels is sticking to its protective walls. In order to avoid punitive tariffs, Chinese electric car manufacturers will be able to accept minimum prices in the future. Anyone who still offers electric cars subsidized by the Chinese state too cheaply will be punished. The reason: The EU Commission fears unfair financial injections from Beijing, which will give Chinese cars a significant price advantage. But an expert warns of a huge error in political thinking.
The big cheap bluff
There is no trace of dumping in Europe, says Ferdinand Dudenhöffer, head of the Center Automotive Research (CAR). On the contrary: Chinese brands like BYD or MG sell their cars to us as luxury goods.
In a study he calculates how absurd the situation is: 13 models examined cost an average of 14,936 euros net in China. In Europe, dealers charge an average of 32,573 euros for the same cars – plus VAT. That’s a markup of 118 percent.
Chinese electric cars are up to 154 percent more expensive in Switzerland
A price comparison from SRF for Switzerland came to the same conclusion: “Chinese cars cost up to 154 percent more in Switzerland than in China. “Manufacturers are siphoning off massive amounts of purchasing power,” reported SRF in October 2025. The Chinese small electric car Leap engine T03 In China it costs the equivalent of 6,700 francs, here it is available from 16,990 (+ 154%). This is despite the fact that Switzerland, unlike the EU, does not impose punitive tariffs on electric cars produced in China.
Dudenhöffer dispels the dumping myth: “At the current price level in Europe, there should still be significant scope for Chinese manufacturers to reduce prices.” Manufacturers could therefore massively reduce their prices and still be well above the EU minimum prices. This is probably also the reason why Beijing also welcomes the new guidelines for minimum prices.
Why Chinese electricity is not cheap in Europe
However, the car companies from China are not currently planning any cheap offers. The reasons lie in the expensive market launch: “High advertising and distribution costs currently do not allow a price war given the low sales figures.”
Car dealers hope for an end to the chaos
Brands from China have long been a survival strategy for European car dealers. The punitive tariffs of the past few years hit the industry hard. German companies that produce in the Far East and import electric cars back to Europe were also targeted. The consequences: price chaos and unsettled customers.
That is why the German motor vehicle industry is evaluating the new one EU guideline on minimum prices positive. The industry sees this as a lifeline for planning security: minimum prices could create stability without fundamentally eliminating competition.
It remains to be seen whether the minimum prices planned by the EU will calm the market and protect the European car industry from price dumping or ultimately just keep prices artificially high for drivers.