According to an Allianz estimate, the European economy, and behind it the automotive industry of the old continent, could suffer (very) seriously from imports of Chinese electric vehicles in Europe.
Seven billion euros per year by 2030. This is the amount of lost revenue estimated by Allianz for manufacturers of European electric vehicles… at least if nothing is done to regulate the import of Chinese competing vehicles in the course of the next few years.
According to the German insurer, European regulators must roll up their sleeves and adopt a number of measures to balance as quickly as possible a situation that could seriously impact the automotive industry of the old continent.
Among the measures recommended, the establishment of reciprocal customs duties on cars imported from China, but also to promote investment in research relating to batteries, or even allow Chinese car manufacturers to build some of their cars in Europe.
The big bosses of the car sector concerned
Be that as it may, the big bosses of the European automotive sector are not mistaken: China has all the cards in hand to cause them harm thanks to vehicles of much better quality than in the past, offered to generally affordable prices. “For me, the greatest danger [pour les prix des véhicules électriques] is the arrival of the Chinese, who offer very competitive prices and very good vehicles “, moreover recently commented Linda Jackson, CEO of Peugeot, whose remarks are taken up by Automotive News Europe.
The person concerned also indicated that the price reductions applied recently by Tesla are adding additional competitive pressure on European players in the industry. “So we have to make sure that we have the necessary technology and that we are not necessarily trying to get the cheapest car, but the best equipment-price ratio.added Linda Jackson. An observation largely shared by Carlos Tavares, leader of the Stellantis group, who mentioned in January the “terrible fightto come with Chinese builders.
Towards a large trade deficit for the EU?
It must be said that if the European car giants are in great danger of being jostled in their own land, they are already in China where their vehicles find less easily takers in the face of seriously reinforced local competition. A context of strong competition on the Chinese market which is also one of the reasons encouraging local manufacturers to export their electric cars to Europe, where demand is increasingly strong.
The European Union, meanwhile, could also be impacted commercially, with a projected deficit estimated at 24 billion euros by 2030, again according to Allianz.
“The stakes are high for the European automotive industry: four out of five cars sold in Europe are assembled locally“, emphasizes the insurer. “Europe is also the world’s leading exporting power in this sector, with the automotive trade having generated between 70 and 110 billion euros of trade surplus for the European economy each year for the last decade.we read.
It should be noted that the United States should be less worried by the ambitions of Chinese manufacturers in terms of exporting and conquering markets. Allianz also describes the American square as being “much more difficult for Chinese vehicles to conquer“, and this because of the”Inflation Reduction Act(IRA) and its protectionist aim.
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