European carmakers are reviving iconic retro models as affordable electric vehicles to counter the rising tide of Chinese EV imports. Stellantis-owned Citroën plans to launch an electric version of its classic 2CV in 2028, priced at €15,000, while Volkswagen has introduced the ID. Polo, inspired by the Golf, at €25,000.
These moves capitalize on nostalgia and heritage—assets Chinese brands lack—as they face intensifying competition. Chinese manufacturers like BYD, Li Auto, and Aito are gaining ground, with AlixPartners projecting Chinese brands will capture 16% of European sales by 2030. Chinese EVs cost roughly $20,000 to produce, compared to $31,000 for European equivalents, due to cheaper batteries and materials.
With European plants operating below 60% capacity and thousands of jobs cut, Western firms are pushing for protective policies. In response, Chinese firms like Changan and Chery are shifting to local production in Europe—Chery is building in Spain and negotiating with Nissan’s UK plant—to bypass tariffs and meet demand. Changan aims to produce 180,000 vehicles in Europe by 2028, targeting 1.5 million overseas sales by 2030.
Meanwhile, CEOs from Stellantis, Volkswagen, and Renault are urgently calling for finalized "Made in Europe" rules to level the playing field.
Source: Financial Times Companies · Summarized by HeadlinesBriefing