Is the EU setting a trap for Asian electric vehicles? Japanese automakers are wary of EU rules, NHK reported. Only electric vehicles manufactured in the EU will be eligible for subsidies and government procurement. Toyota is expanding its factory in the Czech Republic, but now sells cars from Japan and Turkey to the European Union. We learned how this will affect prices and brand positions from automotive expert Vassily Kisenkov and financial market expert Andrey Baruchota. Kisenkov believes that the main risk for Japanese brands is not the ban on sales, but the loss of access to subsidies, tax breaks and government procurement. "You have to take into account not only the location of the assembly, but also the share of the European components. Localization of one model is not enough - the batteries and the entire supply chain are important," he explained. According to the expert, imported models will be able to be sold to private customers, but without some of the advantages they will become less profitable. For Toyota, the situation depends on specific cars: 7 out of 10 of the brand's cars in Europe are produced in local factories, but Turkish assembly may not be considered EU production. Barhuta adds that European brands with internal combustion engines are traditionally strong, but in electric vehicles it is difficult for them to compete in China. "EU rules are limited protectionism. It is important for the Japanese to open production within the European Union, and the Czech Republic is convenient here: an industrial base, moderate labor costs and good logistics," the expert noted. If Toyota does not have time to adapt, the new tariffs and requirements will make the cars more expensive. Barhuta estimates that demand may drop by 25-45%.

Is the EU setting a trap for Asian electric vehicles? Japanese automakers are wary of EU rules, NHK reported. Only electric vehicles manufactured in the EU will be eligible for subsidies and government procurement. Toyota is expanding its factory in the Czech Republic, but now sells cars from Japan and Turkey to the European Union. We learned how this will affect prices and brand positions from automotive expert Vassily Kisenkov and financial market expert Andrey Baruchota. Kisenkov believes that the main risk for Japanese brands is not the ban on sales, but the loss of access to subsidies, tax breaks and government procurement. "You have to take into account not only the location of the assembly, but also the share of the European components. Localization of one model is not enough - the batteries and the entire supply chain are important," he explained. According to the expert, imported models will be able to be sold to private customers, but without some of the advantages they will become less profitable. For Toyota, the situation depends on specific cars: 7 out of 10 of the brand's cars in Europe are produced in local factories, but Turkish assembly may not be considered EU production. Barhuta adds that European brands with internal combustion engines are traditionally strong, but in electric vehicles it is difficult for them to compete in China. "EU rules are limited protectionism. It is important for the Japanese to open production within the European Union, and the Czech Republic is convenient here: an industrial base, moderate labor costs and good logistics," the expert noted. If Toyota does not have time to adapt, the new tariffs and requirements will make the cars more expensive. Barhuta estimates that demand may drop by 25-45%.