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The European Union's new tariffs on electric vehicles (EVs) imported from China, reaching as high as 35.3%, are expected to significantly impact Cyprus' already slow-moving EV market, according to a report by Kathimerini's Dorita Yiannakou. The new regulation, which went into effect on October 30, compounds a pre-existing 10% duty and targets key Chinese EV brands, including popular models from MG Motors, BYD, and other manufacturers. MG Motors Cyprus, the only Chinese EV brand currently available in Cyprus, may absorb the tariff costs temporarily to encourage sales, though price adjustments may start in 2025.
The tariffs come as Cyprus struggles to increase EV adoption, with obstacles including limited charging infrastructure, insufficient state incentives, and high costs for potential buyers. Though Cyprus saw a slight increase in EV registrations—168 through September 2023 compared to 166 in all of 2022—this growth is likely to slow under the new tariffs, raising concerns about the future of electrification in the country.
MG Motors Cyprus director Stelios Asimenos voiced frustration, noting that European tariffs could drive consumers away from EVs as they weigh the economic and environmental benefits. Asimenos recommended that Cyprus invest in infrastructure improvements, such as installing charging stations on highways and in urban areas and introducing green loans and financing options. He also suggested practical incentives, including free public parking for EVs and upfront subsidies at the point of purchase.
China, accusing the EU of protectionism, has threatened retaliatory tariffs on European goods, with potential targets in the pork, dairy, and spirits industries. Additionally, China has appealed to the World Trade Organization (WTO) over the tariffs, arguing that these measures harm the global EV market.
Despite these tensions, officials believe that Cyprus, like other EU countries, will continue to shift toward green technology, albeit at a slower pace.
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