EV stocks rose in Hong Kong on Tuesday, after the European Commission said it’s considering a minimum price system to replace import tariffs, a move that would bode well for the manufacturers’ product margins and sales growth.
BYD up 4%; XPeng, Leapmotor up 3%; Li Auto, Nio up 2%.
Under the plan, outlined by the EU on Monday, Chinese exporters would submit a proposal on minimum import prices, annual volume limits, and future investments in the region for the commission to assess. The new regime would replace tariffs on Chinese EVs imposed in 2024 that range up to 35%.
The move comes as the EU looks to shore up trade relations with other partners as tensions with the US worsen, following President Donald Trump’s threats to seek control of Greenland. At the same time, the EU is under pressure to protect its domestic automotive industry, which faces competition from Chinese rivals selling affordable EVs in more and more markets around the world, not just in Europe.
“While awaiting details, we tend to read it as constructive for Chinese EV’s sales expansion in Europe,” Morgan Stanley analysts wrote in a note. “Key players — like BYD, SAIC, and Geely — shall benefit.”
China exported 579,000 battery EVs to Europe in the first 11 months of 2025, with BYD, SAIC and Zhejiang Geely Holding Group Co. each accounting for roughly 10%-15%. The average price of China-made EVs sold in Europe was around 25,000 euros ($29,140) last year, compared to the overall average of battery EVs imports at roughly 30,000 euros, according to Morgan Stanley estimates.
