Chinese carmakers are facing scrutiny in Europe
The recent iaa Mobility motor show in Munich showcased the latest models from bmw, Mercedes-Benz, and Volkswagen in flashy temporary pavilions. However, a few miles away in the show halls, Chinese electric vehicles (evs) were competing for attention and floor space, raising concerns that well-made, stylish, and affordable evs from China could outcompete established European carmakers. This fear has prompted the European Union’s lawmakers to take action.
On September 13th, the European Commission announced an “anti-subsidy investigation“ into Chinese car firms, suspecting foul play. Those found guilty may face tariffs higher than the current 10% levied on Chinese imports. Although Chinese car imports in Europe are still relatively small, they are rapidly growing. In the first seven months of 2023, 189,000 Chinese cars were sold in Europe, accounting for 2.8% of all car sales. Chinese pure battery cars, led by Polestar and mg, made up nearly 8% of sales in this category, a threefold increase in the past two years. Other Chinese brands like Aiways, byd, Nio, Ora, and Xpeng are also available, with Leapmotor poised to join them. According to ubs, China’s share of all cars sold in Europe could reach 20% by 2030, all of which will be electrified.
China’s progress in the European car market is partly driven by the government’s ambition to establish a global presence in car manufacturing. With a slowdown in ev sales in China and excess production capacity, Chinese car producers are looking to expand abroad. Since the American market is protected by higher tariffs and subsidies favoring domestic carmakers, they are turning their attention to Europe, where the more compact Chinese models align better with European preferences.
2023-09-14 04:16:36
Post from www.economist.com
rnrn