BYD, Geely May Enjoy Higher Margins Under EU's Latest Auto Price Guidance -- Market Talk

Dow Jones01-14

0455 GMT - Chinese battery electric vehicle makers BYD and Geely could benefit the most under the EU's latest guidance on submission of price undertaking offers that allow these BEV exporters to set a minimum import price, says Daiwa analyst Kelvin Lau in a note. This MIP would replace current tariff paid by Chinese automakers. Lau reckons the change is positive for BEV companies that haven't been undercutting prices in Europe, notably BYD and Geely, as MIP for them must be at least as high as comparable products produced in the EU. These "manufacturers could retain the difference themselves instead of paying to the EU as a tariff, likely improving margins," Lau says. Players like BYD and Geely will be able to maintain current selling prices and enjoy higher margins, Lau adds. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

(END) Dow Jones Newswires

January 13, 2026 23:55 ET (04:55 GMT)

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