Chinese-Swedish electric vehicle (EV) brand Lynk & Co has announced that it will not pass the cost of anticipated tariffs on its forthcoming battery-electric vehicle to consumers. The announcement was made by Nicolas Appelgren, CEO for Europe, at the Automechanika autos trade fair in Frankfurt.
The company’s first China-made battery-electric car, a compact SUV, is set to debut in Europe next month. Despite the European Commission’s proposed tariff of 18.8% aimed at countering what it views as unfair subsidies for Chinese EV makers, Lynk & Co plans to absorb these costs rather than increasing prices for customers.
“We cannot – a lot of the competitors are produced in Europe,” Appelgren explained. “We need to price the car correctly in the market and work from there.” This strategy reflects the brand’s commitment to remaining competitive in a region where many rival EVs are produced locally.
Looking ahead, Lynk & Co is preparing to shift its production to Europe. Appelgren revealed that the company, co-owned by Zhejiang Geely Holding Group and Volvo Cars, is exploring potential locations for a new manufacturing plant. The next battery-electric model released in the region will be produced in Europe, addressing the potential impact of tariffs and aligning with European production standards.
The company’s current battery-electric compact SUV is based on the same platform as Volvo’s EX30 and Zeekr’s X, which are priced between 40,000 and 45,000 euros ($49,621.50) in Germany. Lynk & Co has yet to release the final pricing for its new model.
In contrast to Lynk & Co’s approach, SEAT/CUPRA CEO Wayne Griffiths has expressed concerns about the financial implications of a 21.3% tariff on the CUPRA Tavascan EV, also manufactured in China. Griffiths warned that such tariffs could jeopardize the company’s financial stability and its ability to meet EU-mandated carbon dioxide reduction targets.
Lynk & Co’s European operations currently include the sale and rental of a hybrid SUV across seven markets. The brand is also negotiating with retailers to expand its showroom presence by the end of the year and plans to introduce another plug-in hybrid next year. Additionally, the company aims to increase its sales to fleet buyers, who represent a significant portion of EV purchases in Europe.
