Chinese automakers are rapidly gaining ground in the European electric vehicle (EV) market, posing a competitive threat to long-established European brands. The European Union has launched an investigation into Beijing’s support for its EV industry, adding to tech-related tensions between the West and China.
Chinese EV makers are drawn to Europe due to lower auto import tariffs compared to the US and the presence of a substantial EV battery market. Despite concerns about geopolitics and the impact on local carmakers and jobs, European consumers are increasingly embracing Chinese EVs for their affordability, features, and stylish design.
The surge in Chinese EV sales is raising concerns about the competitiveness of Europe’s automotive industry, which employs millions of workers and is transitioning from fossil fuels to electricity. European Commission President Ursula von der Leyen has highlighted the flood of cheaper Chinese electric cars in global markets, which she attributes to significant state subsidies.
The European Commission’s investigation into China’s EV exports could lead to import duties. While some global automakers manufacture vehicles in China and export them to Europe, one in every five EVs sold in Europe is a Chinese import.
Stellantis, a major European automaker, is vowing to respond to the “Chinese invasion” in the European market with new, competitively priced EV models. The company faces additional pressure from a union strike in the US related to EV battery plant jobs.
Shanghai-based startup Aiways, which focuses on Europe and Israel rather than the crowded Chinese auto market, denies receiving significant subsidies in China. Chinese companies’ ability to offer high-quality, affordable cars is attributed to their experience and partnerships with global automakers, as well as the relative simplicity of building electric motors compared to internal combustion engines.
Chinese EV manufacturers are striving to differentiate themselves in the competitive market. For example, Great Wall Motors’ EV sub-brand Ora is targeting women with cars designed for their body sizes and daily needs. These Chinese EVs are gaining attention in Europe for their unique design and features.
