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Lynk & Co's Strategy to Avoid Tariff Price Hikes in Europe

Lynk & Co's Strategy to Avoid Tariff Price Hikes in Europe

Lynk & Co’s plan to keep prices in check in Europe

Prices matter, especially in a fast-moving electric vehicle (EV) market. Lynk & Co, the Chinese-Swedish brand, says it will keep its cars accessible even as tariffs loom. The company is getting ready to roll out its first China-made battery-electric model in Europe, and Nicolas Appelgren, its CEO for the region, has been clear about one thing: the pricing has to make sense for customers.

The tariff backdrop, simply put

The European Commission intends to apply an 18.8% tariff to Lynk & Co’s upcoming battery-electric compact SUV. The measure targets concerns about subsidies for EV makers in China. Even so, Appelgren says the brand won’t pass those extra costs on to buyers. As he put it, “We cannot - a lot of the competitors are produced in Europe ... we need to price the car correctly in the market and work from there.” In other words, with many rivals building cars inside Europe, Lynk & Co knows it has to meet the market where it is—on price, not just on features.

Shifting production closer to buyers

Looking ahead, the company intends to build its future battery-electric models in Europe. Appelgren said sites are being evaluated for a new plant. The move would help soften the impact of tariffs and, by shortening the journey from factory to customer, align with sustainability goals like lowering transport-related emissions. It’s a practical step: produce where you sell, reduce exposure to policy swings, and keep the price story intact.

How Lynk & Co is thinking about price

The exact sticker price for the compact SUV isn’t out yet. It shares a platform with well-known models like Volvo’s EX30 and Zeekr’s X, which usually land between 40,000 and 45,000 euros. That gives a sense of the neighborhood. Appelgren also said the company must find a workable way forward that doesn’t feel like a “knife to the throat.” Read that as a promise to balance competitiveness with long-term viability—no race to the bottom, but no premium for its own sake either.

Building presence: sales, rentals, and showrooms

Lynk & Co is already active with its first European model, a hybrid SUV, which it both sells and rents across seven markets. That two-track approach helps reach drivers who want to own and those who prefer flexibility. To deepen its footprint, the brand is partnering with retailers to have cars in showrooms by the end of the year. Seeing a car on the floor matters. It makes the brand tangible, and it eases the path from curiosity to test drive to decision.

What’s next: a new plug-in and a push for fleets

The product plan continues next year with another plug-in hybrid. Alongside retail buyers, Lynk & Co is also aiming at fleets—a group that accounts for a notable share of EV purchases in Europe. Serving that segment can build volume, get more vehicles on the road quickly, and introduce the brand to drivers who may later choose one for themselves. It’s a way to grow both awareness and trust.

Why this matters now

The car industry is navigating a tight squeeze: new rules, new competitors, and shifting supply chains. Lynk & Co’s stance—hold the line on pricing, work toward local production, keep the lineup expanding—speaks to that reality. If the company executes, it gives European drivers another option that stays mindful of cost without stepping back from electric and electrified models. The note here is steady, not flashy: make it affordable, make it closer to home, and make it available when someone walks into a showroom.

Frequently Asked Questions

Will Lynk & Co raise prices for its upcoming models?

No. The company says it doesn’t plan to pass the tariff costs on to customers and will focus on staying price-competitive in the market.

Where will Lynk & Co manufacture its future vehicles?

The brand intends to produce future battery-electric vehicles in Europe and is currently evaluating potential locations for a plant.

What is the price range for Lynk & Co’s compact SUV?

The price hasn’t been announced. For context, related models in the same platform family—such as Volvo’s EX30 and Zeekr’s X—typically run between 40,000 and 45,000 euros.

How many markets does Lynk & Co operate in Europe?

Lynk & Co sells and rents its hybrid SUV across seven European markets and is working with retailers to get cars into showrooms by year-end.

What other models can we expect from Lynk & Co?

The company plans to introduce another plug-in hybrid next year and is also increasing its focus on fleet buyers, a significant part of Europe’s EV demand.

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