Chinese automakers like BYD and Xiaomi are rapidly expanding in Europe, offering affordable electric vehicles that appeal to cost-conscious buyers. BYD aims to open numerous outlets in Germany so customers need travel no more than 20 minutes to purchase a car. Xiaomi views Germany as the base for its European expansion after selling 700,000 vehicles domestically.
Chinese cars now account for about one in every ten vehicles sold in Europe, up from one in 100 five years ago, with brands like Chery seeing explosive growth—its Jaecoo 7 model became Britain’s best-selling car in September. However, European policymakers are responding to protect domestic industries. The EU recently agreed with China to potentially halve hybrid gasoline-electric car imports over the next four years, aiming to ease pressure on local automakers like Volkswagen, BMW, and Mercedes-Benz.
The EU industry chief warned the sector is in 'mortal danger,' with Germany’s auto group predicting up to 225,000 job losses by 2035. While tariffs as high as 45% were imposed on Chinese EVs in 2024, hybrids were initially spared, prompting a shift in Chinese export strategy. Experts warn protectionism could raise EV prices by over €2,100, disproportionately affecting middle-class consumers who rely on affordable access to clean transportation amid an energy crisis.
Source: New York Times Business · Summarized by HeadlinesBriefing