Xiaomi to launch electric cars in Europe next year despite EU tariffs

Chinese tech firm Xiaomi will start selling electric cars in Europe next year, it announced at a consumer electronics trade show in Berlin on Thursday, adding to the growing list of Chinese carmakers expanding into the European market despite EU tariffs on China-made electric vehicles (EVs) and growing wariness across the bloc.

Xiaomi Auto, the group’s EV arm, said it would enter several European markets including Germany, where it had signed agreements with eight car dealer groups to build a sales and service network ahead of the launch.

The immediate obstacle would be Brussels’ countervailing duties on Chinese EVs. Since Xiaomi did not participate in an EU anti-subsidy investigation launched in 2023 – it only launched its first EV in China in March 2024 – it is likely to be hit with the highest duty of 35.3 per cent on the cars it exports to the EU, on top of the standard 10 per cent import duty.

Xiaomi declined to comment on whether it was in discussions with the European Commission on a price undertaking offer that would spare it the levy.

At the launch event at IFA Berlin, Xiaomi executives struck a positive tone on its expansion to Europe.

“Xiaomi Auto is committed to long-term investment in Europe,” said Yu Liguo, vice-president of Xiaomi Auto and head of its international business. Alongside its research and development centre in Munich, he said partnerships with local dealers would be key to its European expansion.