BRUSSELS The European Union's anti-subsidy investigation into Chinese electric vehicles (EVs) has cooled Chinese firms' EV sales and harmed their confidence in investing in Europe, a survey of Chinese EV companies showed on Wednesday.

Some 82% of vehicle and industry chain firms said the subsidy investigation had eroded their confidence in investing in Europe in the near future, the survey by the China Chamber of Commerce to the EU and the China Economic Information Service showed. The poll, conducted in April and May, was part of a report on Chinese EV manufacturers and Europe.

A total of 73% of respondents reported a decline in sales in the European market due to the investigation.

A clear majority of companies said collaboration with European partners, such as distributors and leasing companies, was delayed or scaled back, and that the EU probe hurt the image of their brands in Europe, making it harder to attract top European talent.

The European Commission, which oversees trade policy in the 27-nation, said last week it planned to impose additional duties of up to 38.1% on Chinese producers such as BYD, Geely and SAIC, and on Chinese-built cars of Tesla and other Western automakers.

Chinese automakers have urged Beijing to hike tariffs on imported European gasoline-powered cars in retaliation, the state-backed Global Times said in on Wednesday.

Still, the survey found that Chinese EV makers remained committed to Europe as a key strategic market and to expanding their presence there, with a majority planning to establish factories in Europe in the next five years.

"While increasing localisation in Europe remains a long-term strategic goal for these companies, the EU's actions have clearly dampened enthusiasm for such efforts," the report said.

  - Reuters