Faced with increasing competition from Chinese electric vehicles, European carmakers need more time to adapt. The European Commission has initiated an anti-subsidy probe into imported Chinese electric car models, which could provide some breathing room for the European automotive industry. However, concerns persist that this action might have come too late, as Chinese car brands are rapidly gaining traction in the European market.

Some European leaders and industry experts criticize the European Commission's action as too late, questioning whether Europe was complicit in allowing Chinese brands to gain a foothold.

Chinese carmakers have significantly advanced their car-building capacity and battery technology, but it will still take several years for them to establish a significant presence in Europe. European carmakers are gearing up to compete more effectively with cost-efficient electric vehicle offerings in response to the Chinese threat.

While concerns about Chinese brands undercutting European prices exist, data shows that Chinese EVs sold in the EU are not significantly cheaper than non-Chinese counterparts. The European market has traditionally focused on more expensive electric car models, whereas China has catered to various segments, including lower-end models.

European car manufacturers are struggling to integrate expensive batteries into more affordable models, giving China an advantage in battery technology for lower-priced EVs.
Despite the initial perception of Chinese cars as low-quality, they are becoming increasingly competitive in terms of technology and interior quality.

Europe's emphasis on being "technology neutral" rather than favouring a specific solution, such as battery electric vehicles, has hindered the development of a comprehensive strategy.

Some draw parallels between the current Chinese electric car invasion and the Japanese car manufacturers' entry into Europe in the 1990s, suggesting that Europe needs to raise its game to compete effectively.

Source Financial Times, please find the full article HERE.