China-EU tariff agreement on EVs seen cutting shipments but boosting profitability

A requirement to set minimum prices for their cars in the European Union will reduce sales there for Chinese electric vehicle (EV) makers, but higher profit margins will eventually improve their bottom lines and brand reputations, according to analysts and industry officials. Assemblers of Chinese pure-electric cars from BYD to Leapmotor will avoid a brutal discount war after European authorities accepted price undertakings to replace punitive anti-subsidy tariffs of up to 35.3 per cent. Minimum...