Electric cars: European manufacturers struggle to catch up with China

Global automakers and electric vehicle (EV) manufacturers showcased new models and concept vehicles at China’s biggest auto show in Beijing on Thursday, aiming to transform the nation into a major market and production base for new vehicles, a style that is of cars in Europe, the big factories are struggling to keep up.

Toyota and Nissan have both announced cooperation with Chinese technology companiesis dedicated to meeting customers’ needs for AI-driven online connectivity in cars, from social networking apps to autonomous driving features.

Chinese electric car makers are expanding rapidly in overseas markets and are now building more factories in Europe, raising concerns in some countries that they could pose a threat to European carmakers and jobs.

The EU is considering imposing tariffs on electric cars made in China due to government subsidies that have fueled the industry’s growth.

To him speech in the European Parliament last September, the President of the European Commission Ursula von der Leyen pointed out the root of the problem: “International markets are now full of cheap electric cars. And their prices are kept down by huge government subsidies.”

“Europe is open to competition. Not a race to the bottom.”

There is no time to waste on electric cars

The rise of global electric vehicle manufacturers, spurred by tax breaks and subsidies for green energy, has led to fierce price war which is expected to cause turmoil and consolidation of the sector in the coming years.

The development of China’s industry and fierce competition in production and sales have been so rapid that several domestic companies have folded completely, while international ones are lagging behind.

“No other region in the world has seen the rapid transformation of the auto industry like China,” Volkswagen CEO Oliver Blume said Wednesday at an event to mark his company’s presence at the auto show.

“This market has been a kind of training ground for us,” he said, adding: “We have to work hard and fast to keep up.”

Manufacturers such as Volkswagen, which sells about a third of its cars in China, is rushing to develop new market models as a domestic company and is expanding beyond its roots in China as a maker of exotic sedans used in fleets. of a taxi.

Volkswagen Group, which also includes Audi and Porsche, plans to launch 40 new models in China over the next three years and have a lineup of 30 electric vehicles by 2030 in what Volkswagen CEO Oliver Blume told investors on Wednesday was “a second domestic market of that company.” “.

Volkswagen’s response was to move to making cars in China from scratch, rather than adapting European designs for the domestic market.

The company announced earlier this month that it will invest 2.5 billion euros to expand research, development and production in the city of Hefei, where it has teamed up with Chinese electric car maker XPENG Motors to create two mid-size VW models to be launched in 2026.

However, the company has been criticized for operating a factory in the Xinjiang region of western China, where Western governments have accused the Chinese government of human rights violations against minorities. Uighur Muslim.

Among the suspicions is that Chinese authorities have detained hundreds of thousands of peoplemany of whom would be forced into forced labor.

Volkswagen said an authorized inspection found no evidence of forced labor at its factory, although Brandstätter said Wednesday that VW is in talks with its Chinese joint venture partner in Xinjiang and is exploring options for the future of the facility.