The EU’s agreement with China to restrict hybrid vehicle exports is seen as only a temporary shield against the rapid expansion of Chinese automakers in Europe. Executives from Hyundai, BYD, and Changan warned that such measures are late and partial, emphasizing that true defense lies in customer value and local production. BYD is set to begin manufacturing in Hungary this year, while Changan aims to produce 180,000 units in Europe by 2028.
The deal includes a quota of 350,000 vehicles in 2027, down from an expected 800,000 this year, with a 6% annual increase. It could reduce Chinese market share to 6%. Experts caution that Chinese firms may shift production overseas or move upmarket, mirroring Japan’s strategy in the 1980s.
Volvo’s chief commercial officer noted that building locally is the only long-term strategy.
Source: Financial Times Companies · Summarized by HeadlinesBriefing