BYD (BYDDF) (BYDDY) and other Chinese electric vehicle makers rose Tuesday after the European Commission said it is considering a minimum price system to replace import tariffs, a move that could support margins and boost sales growth.
BYD shares jumped as much as 4.8% in Hong Kong trading, Xpeng (XPEV) gained 5.3% and SAIC Motor Corp.’s Shanghai-traded shares added as much as 3.6%.
Under the European Union’s plan announced Monday, Chinese exporters would propose minimum import prices, annual shipment limits, and future investment commitments in the region.
These submissions would then be assessed by the European Commission. If adopted, the framework would replace tariffs on Chinese EVs that currently range as high as 35%.
The levies also apply to China-made vehicles sold by non-Chinese brands, including Tesla (TSLA).
