Stellantis CEO Warns Against Tariffs on Chinese EVs

Carlos Tavares’ Concerns

• Stellantis CEO warns that tariffs will hinder Western carmakers from competing with Chinese rivals.
• Chinese OEMs hold a 30% cost advantage over Western competitors.
• Chinese carmakers may soon capture a 10% market share in Europe.

Carlos Tavares, the chief executive of Stellantis, has raised concerns about the impact of tariffs on Chinese electric vehicles. He believes that imposing tariffs could put Western car manufacturers at a disadvantage in the face of stiff competition from Chinese automakers.

Tavares’ Warning

Following the announcement of new 100% tariffs on EVs imported from China by the U.S., Tavares emphasized that such measures would not incentivize Western carmakers to restructure and adapt to the challenges posed by Chinese rivals.

Related: We Don’t Need U.S. Govt Protection From Chinese Automakers, Says Stellantis Boss

Tavares warned that tariffs could lead to inflation in affected regions and acknowledged the significant cost advantage that Chinese OEMs currently enjoy over Western counterparts.

The Growing Influence of Chinese Carmakers

According to Tavares, Chinese automakers are on track to secure a 10% market share in Europe, selling an estimated 1.5 million vehicles. He emphasized the need to address this growing competition to prevent overcapacity in the market.

Tavares has been vocal about the challenges posed by Chinese competitors and stressed that regardless of tariff decisions, Stellantis must prepare to face these rivals in various global markets.