On October 16, 2024, the Canton Fair opened its doors in Guangzhou, China, showcasing a variety of Chinese electric vehicles (EVs) that attracted over 147,000 overseas buyers. Despite the backdrop of high tariffs imposed by the U.S., EU, and Canada, interest in these vehicles remained strong. The EU's recent decision to impose tariffs of up to 35.3% on Chinese EVs, effective October 4, has raised concerns among manufacturers and exporters, yet buyers expressed enthusiasm for competitive pricing [c728f787].
During the fair, international buyers highlighted the affordability of certain models, such as a coupe priced at €40,000 (approximately US$43,590), indicating that competitive pricing could offset the impact of tariffs [c728f787]. Dom Du from Dayun Automobile noted that they anticipate flat export orders for 2025, suggesting a cautious outlook amid the evolving trade landscape [c728f787]. Meanwhile, Jinpeng Group showcased its electric tricycle priced at US$1,000, which remains competitive even with the new tariffs [c728f787].
The Canton Fair comes at a time when the European Parliament has voted to impose additional tariffs on Chinese EVs, reflecting broader trade tensions. These tariffs are part of a strategy to protect the EU's automotive market, which has seen a significant influx of Chinese EVs, with companies like BYD capturing a notable share of sales [0eaa382b].
As the EU navigates these complex trade dynamics, the Canton Fair serves as a platform for Chinese manufacturers to showcase their innovations and resilience in the face of tariffs. However, the fair also highlighted challenges, such as fewer buyers from Russia and the Middle East, indicating shifting market dynamics [c728f787].
In response to the tariffs, Chinese officials have expressed disappointment, arguing that such measures undermine trust and could hinder broader economic relations between China and the EU [7a61727b]. The ongoing negotiations between China and the EU regarding these tariffs are crucial, as both sides seek to find common ground amidst rising tensions [5c6bcd87].
With the global automotive industry facing these challenges, the Canton Fair underscores the importance of adaptability and competitiveness in the EV market, as manufacturers strive to maintain their foothold in international markets despite regulatory hurdles [c728f787].