Allianz: Chinese electric vehicles are the biggest risk to European automakers

Electric vehicles made in China are the biggest risk to European automakers. This was stated by German insurer Allianz in a report published today. If politicians do not take appropriate measures, Chinese competition could cost European manufacturers seven billion euros (163.5 billion Kč) in profits a year by 2030, according to the study. The report says Chinese competition could cost the Czech economy up to 0.4 percent of gross domestic product (GDP).

Allianz proposes reciprocal tariffs on cars imported from China, improvements in the development of materials and technologies for electric vehicle batteries, and allowing Chinese automakers to manufacture cars in Europe.

According to the Allianz report, European automakers face a dual threat. On the one hand, their sales in China are falling as local manufacturers increase their market share. For example, German automotive group Volkswagen lost its position as China’s best-selling passenger car brand in the first quarter, overtaken by local brand BYD. On the other hand, sales of imported electric vehicles made in China are growing, with both domestic and Western automakers increasing their sales.