A report by Allianz Trade cited by Automotive News Europe mentioned that electric vehicles (EV) from China could cost European automakers EUR 7 billion (RM 34 billion) in lost profits by 2030 if policymakers fail to act.
The report calls for reciprocal tariffs on imported Chinese vehicles, increased development of EV battery materials and technologies, and for Chinese automakers to be allowed to build cars in Europe.
Peugeot CEO Linda Jackson has also warned of the threat from Chinese EV makers, who are offering high-quality vehicles at competitive prices, putting pressure on European car companies.
The report also warns that the EU could face over EUR 24 billion in lost economic output from Chinese EV imports in 2030, with Germany, Slovakia, and the Czech Republic particularly affected.
Patrick Koller, CEO of French auto supplier Faurecia, said that Chinese automakers have an “open lane” to Europe’s entry-level electric vehicle market. With the unveiling of affordable EVs by Chinese carmakers like BYD, many plan to export to Europe where electric vehicle sales are booming.
Koller predicts that due to their “fantastic competitive advantage,” Chinese automakers could sell one million vehicles per year in Europe, equivalent to 8 percent of the market last year.
Also read: Review: BYD Atto 3 – Not without its pains, but it’s probably the most complete EV SUV for RM 170k
At the Shanghai auto show, BYD unveiled the Seagull, which shocked analysts and rivals with its starting price of CNY 78,800 (around RM 51k). This is about a quarter of the price of most electric vehicles now on the market in Europe.
Bill Russo, the Shanghai-based founder and CEO of strategic advisory firm Automobility, predicts that the Seagull will become the best-selling car in China within six months of its launch.
Russo also predicts that the value proposition of the Seagull will be compelling to overseas customers. “Affordability is attractive to everyone anywhere, whether it’s an emerging market, the United States, or Europe, this kind of car with this kind of value proposition will sell,” he said.
Also read: In the kingdom of Toyota, BYD Japan hits its best-ever sales month, overtakes Hyundai
Source: Chinese EVs could cost European carmakers over 7 billion Euro lost in profits by 2030