BMW revealed that its joint venture in China, which manufactures the electric Mini, has been designated as a “cooperating company” in the European Union’s latest draft tariff document concerning duties on China-made electric vehicles (EVs). This classification qualifies the venture for a reduced tariff rate of 21.3 percent, down from the highest level of 37.6 percent.
The joint venture, Spotlight Automotive, is a partnership between BMW and China’s Great Wall Motors aimed at producing fully electric Mini cars. In a statement, BMW noted that it was “logical” for Spotlight Automotive to be included among the cooperating companies, reflecting its compliance with the EU’s investigation criteria.
Initially, the electric Mini was not part of the EU’s sample analysis in the lead-up to the tariff announcement, Reuters news report said. As a result, the vehicles were automatically subject to the highest provisional tariff rate. However, the reclassification as a cooperating company has now secured a more favorable tariff rate for the Mini, which will help maintain its competitiveness in the European market.
This development is part of the broader context of the EU’s efforts to address what it sees as unfair subsidies provided to Chinese EV manufacturers, with the aim of leveling the playing field for European automakers. The final tariffs are still under review, with a decision expected by the end of October.