Tesla, BMW take EU to court over China EV tariffs

Elon Musk's Tesla and German auto giant BMW have challenged EU import tariffs on China-made electric vehicles at the bloc's top court, the European Commission said Monday.

The carmakers – which both manufacture EVs in China – followed challenges filed with the Court of Justice of the European Union by Chinese automakers BYD, Geely and SAIC against the extra tariffs of up to 35 percent.

"We take note of these cases and we look forward to defending ourselves in court," commission spokesman Olof Gill told AFP.

Brussels imposed the extra tariffs on Chinese-made electric cars at the end of October after an anti-subsidy investigation.

The move came as Europe's car industry has been plunged into crisis by high manufacturing costs, a stuttering switch to electric vehicles (EV) and increased competition in key market China.

China has consistently denied its industrial policies are unfair and has lodged a complaint with the World Trade Organization about the tariffs.

Under the tariff scheme, Tesla vehicles manufactured in Shanghai face an additional surcharge of 7.8 percent on top of 10 percent already in place for EV imports from China.

BYD similarly faces a 17 percent surcharge, Geely 18.8 percent and SAIC 35.3 percent.

Other groups that cooperated with the European investigation face a 20.7 percent extra tariff.

The German government was one of five EU member states that opposed the measures, fearing retaliation against its own manufacturers.