BMW’s new CEO is warning the European Union against raising tariffs on Chinese-made electric vehicles, arguing that China could respond by restricting the battery cells European EV factories depend on. Milan Nedeljković said some Chinese cars are being sold in Europe at prices that “make no business sense,” but he favors negotiations and voluntary agreements over additional tariffs.
BMW CEO Calls for Talks Instead of Higher Tariffs
In an interview with Frankfurter Allgemeine Zeitung, Nedeljković was asked whether Chinese automakers are dumping cars in Europe. He did not use that term, but said some Chinese vehicles are being offered at prices that make no business sense.
“Some Chinese cars are being offered here at prices that make no business sense. This is leading to protectionist tendencies in Europe and efforts to protect domestic markets. BMW operates globally; we support free trade, and we embrace competition. But a distortion of competition caused by incomprehensible pricing is dangerous,” Nedeljković said.
China-built EVs already face additional EU duties ranging from 17 to 35.3 percent, with rates set by brand following an anti-subsidy investigation.
Nedeljković said increasing those tariffs could create a greater risk because China could retaliate by restricting battery-cell supplies.
“Additional tariffs would be an even greater intervention, which is why I favor voluntary agreements based on fair framework conditions. These are negotiations that must now take place at the political level. As a retaliatory measure, the Chinese could restrict the supply of battery cells, on which Europe depends,” he said.
BMW CEO Warns Against Escalation
Nedeljković said the objective should be to establish long-term market conditions that support jobs and investment while improving Europe’s competitiveness.
“No one wants an escalation. But the goal is to ensure sound market conditions in the long term, because jobs and the ability to attract investment depend on them. That is why one thing is certain: policymakers in Brussels and Berlin must strengthen the competitive conditions for our economy. Competitiveness cannot be achieved through isolationism,” he said.
BMW also has its own exposure to any increase in tariffs on Chinese-made EVs. The electric MINI Cooper and MINI Aceman are built in China and exported to Europe, meaning a tariff increase on Chinese-made electric vehicles would also affect MINI.
BMW’s China Sales Have Declined
The issue comes as BMW faces a significant decline in sales in China. The BMW Group delivered a record 847,900 cars in China in 2021. According to the company’s Annual Report 2025, that figure had fallen to 626,000 by 2025, a 26 percent decline over four years.
The decline was driven largely by local brands that moved faster on electric vehicles and software. Some of those Chinese brands are now expanding across Europe.
BYD, SAIC and Geely are growing their European lineups, often pricing their vehicles below German rivals while continuing to offer technology. BMW is therefore facing competitive pressure in both China and Europe.
European Automakers Back a Different Approach
Not every European automaker agrees with Nedeljković’s approach. Volkswagen Group, Renault Group and Stellantis have jointly backed “Made in Europe,” a proposed EU framework that would require 70 percent of a car’s content to come from the region.
The proposal could also increase costs for consumers. The Bruegel think tank estimates that the rules could add more than €2,000 to the price of an EV, according to Euronews, mainly because European-made battery cells cost more.
BMW Favors a Less Confrontational Path
Nedeljković, who became CEO this year, is advocating negotiations and voluntary agreements rather than additional tariffs. His approach would require China to agree to raise prices on cars that are already selling well, while the potential benefits for Beijing remain unclear.
