European car manufacturers are very concerned about Chinese competitors. A new report on this subject has made a sound on the agenda.
The automobile industry has been changing rapidly in recent years. At the center of this change are fully electric cars, in particular. Since electric cars have much fewer parts than standard models, they can be easily produced by new generation companies that do not have a deep-rooted history. In this way, there is an incredible current in the electric car market. Chinese vehicle boom is happening, Vehicles from Chinese manufacturers scare European giants. An up-to-date report issuing Allianz Trade, “Chinese-made electric vehicles for European automakers poses the greatest risk. If politicians do not act, they will result in lost profits of 7 billion euros ($7.7 billion) per year by 2030.” he explains. So what can be done about this in Europe? The report lists proposals such as imposing tariffs on cars imported from China, doing more for the development of batteries and other technologies for electric vehicles, and allowing Chinese automakers to produce cars in Europe. This last point is also mentioned because it costs more to produce vehicles in Europe than to produce vehicles in China. The high cost of production naturally also affects the selling price, which is against vehicles from China. It reduces the competitiveness of European manufacturers.
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Of course, this is not the first time this issue has come up. CEO of Stellantis, founded in January 2021 by the merger of French Groupe PSA and Italian-American Fiat Chrysler Automobiles. Carlos Tavaresis among the names that are aware of the approaching Chinese danger. TavaresAt CES 2023, he made some surprising statements to reporters on these issues. CEO, politicians in Europe “Stellantis, BMW And Volkswagen” If it does not take action to assist companies such as He stated that European companies will enter into a terrible war with their Chinese rivals. Stating that the price difference between European and Chinese-based vehicles is very high, Carlos Tavares at the same time “If the current situation does not change, middle-class European customers will increasingly turn to Chinese models. Because the purchasing power of many people in Europe is visibly decreasing” said. Due to European regulations, vehicles produced in the region are compared to competing models produced in China. Tavares also said that it is about 40 percent more expensive. in his statement, “This is a very bleak scenario. “But it doesn’t have to be this way.” said. Tavares also If European politicians fail to protect local producers, He also stated that they will have to move production to cheaper countries in order to reduce costs and compete directly with low-priced Chinese vehicles.