Europe’s top car manufacturers reportedly have little time to devise operational strategies to address ever-increasing competition from their Chinese counterparts. During the Reuters Events Automotive in Munich, industry leaders indicated that they needed more time instead of steeper import tariffs to maintain their edge in the global market.
European Carmakers Need Time To Devise Strategies To Handle Chinese Competition
Trade regulators in Brussels stated that, based on the findings of an examination of Chinese government subsidies, they could revise the current import costs of Chinese-made electric vehicles (EVs). Ursula von der Leyen, the European Commission president, said that it would be a bespoke investigation and any duties would align with the “level of damage”.
Von der Leyen also said that the affected Chinese EV makers would be informed by 5 June 2024. Executives in the European automotive industry, however, believe that this will not prevent the ripple effect of lower-cost EVs.
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Based on data from the Rhodium Group, Chinese EV prices are approximately 30% less and dominated a 19% share of the European EV market in 2023. Thomas Schmall, a board member of Volkswagen (VOW.DE), told Reuters:
And the window is closing. From my point of view, we have two or three years. If we are not fast … it will be really tough [for the German industry] to survive. Today, it is no longer size that guarantees survival, but speed.
Others echoed this view and added that rapid strategy adjustments are needed and that success depends on the elimination of “regulatory chaos and the bureaucracies” that impact the industry.
