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Tesla (Shanghai) and three BMW-linked companies have brought separate cases against the European Commission at the EU General Court, challenging the EU’s definitive countervailing duties on certain battery-electric vehicles made in China. The filings do not mean the companies have won: they set out legal challenges, and the available case records do not establish a ruling in either company’s favor.
What the EU duties cover
Commission Implementing Regulation (EU) 2024/2754 imposes definitive countervailing duties following an anti-subsidy investigation. It covers specified new battery-electric passenger vehicles originating in China, principally designed to carry nine or fewer people. The scope excludes L-category vehicles and motorcycles, and includes vehicles equipped with an internal-combustion range extender. It is not a blanket tariff on every vehicle from China. Read the regulation.
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The rate depends on the producer. In the consolidated regulation dated 11 February 2026, Tesla (Shanghai) is listed at 7.8%, while the rate for all other companies is 35.3%; other named producers and groups have their own listed rates. The Commission described the definitive-duty range as 7.8% to 35.3% in its 2025 account. Those figures should not be treated as one rate applying to all China-made EVs. Consult the consolidated text and the Commission’s 2025 account.
The measure was amended after a partial interim review, and the Commission accepted an undertaking connected with the measures in February 2026. An exporter’s actual treatment therefore depends on the applicable current text and any relevant undertaking, not just the original regulation. See the 2026 amendment and undertaking decision.
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What the BMW-linked companies are challenging
Bayerische Motoren Werke AG, BMW Brilliance Automotive Ltd and Spotlight Automotive Ltd filed Case T-35/25 against the Commission on 21 January 2025. They ask the General Court to annul Regulation 2024/2754 insofar as it concerns them.
The published case notice records several pleas, including the applicants’ allegation that the Commission made a manifest error by failing to include the largest single Chinese exporting producer of battery-electric vehicles in its sample. That is the companies’ argument, not a finding by the court. Read the published notice for Case T-35/25.
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What Tesla is challenging
Tesla (Shanghai) Co., Ltd filed a separate action, Case T-38/25, against the Commission on 22 January 2025. The case challenges the same definitive-duty regulation. The retrieved InfoCuria entry listed the case as pending; the available record does not establish a judgment resolving Tesla’s challenge. Check the InfoCuria record for Case T-38/25.
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| Case | Applicants and filing date | Challenged act and requested relief | Publicly stated plea or status |
|---|---|---|---|
| T-35/25 | Bayerische Motoren Werke AG, BMW Brilliance Automotive Ltd and Spotlight Automotive Ltd; 21 January 2025. | Regulation 2024/2754; annulment insofar as it concerns the applicants. | The published notice reports, among other pleas, an allegation about the sampling of Chinese exporters. The notice available here documents the filing but does not establish a current register status or a court finding. |
| T-38/25 | Tesla (Shanghai) Co., Ltd; 22 January 2025. | Regulation 2024/2754; the retrieved case entry identifies the Commission action being challenged. | The retrieved InfoCuria entry listed the case as pending; no outcome resolving the challenge is established by that record. |
China’s WTO complaint is a separate proceeding
China also initiated a separate WTO dispute by requesting consultations in November 2024 over the EU’s definitive duties. The WTO announcement says the request formally initiated a dispute and reports China’s position that the measure conflicts with provisions of the WTO Agreement on Subsidies and Countervailing Measures and GATT 1994. These are China’s claims, not a WTO ruling on the merits, and they are distinct from the companies’ cases before the EU General Court. Read the WTO announcement.
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