EU Automotive Crisis: Italian Industry Association Calls for 80% Tariff on Excess Chinese Vehicles and Parts

1. The 80% Tariff Proposal: Quota System + Full Coverage of Vehicles & Parts

Roberto Vavassori, President of the Italian Association of the Automotive Industry (Anfia), proposed a radical trade protection plan in a recent interview:

• Quota Threshold: Chinese imported vehicles representing ≤ 8% of total annual new car registrations in the EU would enjoy zero-tariff benefits.
• Over-Quota Penalty: Any volume exceeding the 8% limit would be subject to a uniform 80% high tariff.
• Scope of Coverage: The tariff mechanism should cover both complete vehicles and auto parts simultaneously (as components account for roughly 80% of a vehicle's total value).

Vavassori candidly stated: "We have enormous respect for what the Chinese automotive industry has achieved, but that respect has now turned into deep concern. Europe cannot afford to lose an industry so vital to its strategic autonomy."

2. Pain Points in the European Auto Industry & Supply Chain Alarm

This call comes against the backdrop of a profound shake-up in the European automotive manufacturing sector:

• Market Share Breakthrough: Data from the European Automobile Manufacturers' Association (ACEA) shows that Chinese-brand vehicles surpassed a 9% market share in the EU during the first half of the year.
• Giant Restructuring Waves Ripple Through Supply Chain: Volkswagen recently passed a massive restructuring plan in response to declining market demand and fierce competition from Chinese automakers. Italian automotive suppliers previously exported €4.9 billion to Germany, with Volkswagen alone accounting for 20% of that total.
• Risk of Precipitous Drop in Component Exports:
  • Current Year Forecast: Affected by the overall contraction in European automotive production, Italian component exports dropped by 4.6% in the first half of the year, with a full-year decline expected to reach around 10%.
  • Worst-Case Scenario: Without strong protective measures, Italian automotive component exports could plummet by 40% to 50% by 2028. Vavassori remarked directly that "the entire industry would truly reach the end of the line."

3. Questioning Existing Policies & Chinese "Screwdriver Factories"

Vavassori expressed strong criticism regarding the EU's current counter-measures and industrial policies:

• Limited Effectiveness of Current Tariffs: The EU currently imposes countervailing duties ranging from 18% to 45% on top of the standard 10% import tariff on Chinese electric vehicles (valid for 5 years), yet this has failed to stem the import momentum.
• Criticism of the Proposed "Net-Zero Industry Act": He believes the draft act, originally intended to support local capacity and decarbonization, will instead encourage component imports from countries with free trade agreements with the EU (such as Morocco and Turkey). "Under its current draft, it accelerates nothing—it will only accelerate the demise of the automotive industry."
• Wary of "Screwdriver Factories": Regarding moves by Chinese automakers like BYD and Chery to set up production in Europe, he questioned their willingness to source locally, predicting these facilities will merely act as "screwdriver assembly plants" relying on imported components from China or low-cost neighboring countries.

Summary: The warnings from component suppliers highlight that the European auto industry's anxiety has evolved from a "slow transition to electrification" into an "existential supply chain crisis." As the risk of local supply chain disruption intensifies, whether the EU will deploy harsher trade instruments in the future will remain a central focal point of Sino-European automotive trade relations.