Chinese-made electric vehicles (EVs) could cost Europe's automakers €7 billion in lost profits by 2030, warns a report from Allianz Trade. Policymakers should reciprocate China's tariffs on imported cars, encourage the development of EV battery materials and technologies and allow Chinese automakers to build cars in Europe, the report suggested. Peugeot CEO Linda Jackson agreed that Chinese EVs are a growing threat, as they are offering better cars at affordable prices. She warned that Europe should focus on the best value for money rather than the cheapest car. Tesla's recent price cuts add to pressure on the auto industry and lower the residual value of cars.

This study echoes the warnings of Stellantis CEO Carlos Tavares, who spoke at CES in January, that the European auto industry faces a "terrible fight" with Chinese importers. Europe's car companies face the double threat of falling sales in China and rising sales of imported Chinese EVs.

The Allianz Trade report argues that policymakers need to take action in order to address these risks. Reciprocal tariffs on imported cars from China would create a level playing field for Europe's automakers. Encouraging the development of EV battery materials and technologies would help Europe to compete with China's dominance in the EV market. Allowing Chinese automakers to build cars in Europe would be a way of preventing the loss of market share by European automakers.

The report highlights the need for Europe to remain competitive in the global EV market, which is rapidly expanding. As Chinese EV makers continue to grow their market share, Europe's automakers face the challenge of competing with more affordable and better-quality vehicles. Policymakers must act to ensure that Europe's automakers can continue to operate profitably and remain competitive in the global marketplace.

Legend Motors As a prominent vehicle distribution company that has been operating for the past 20 years,  We Legend Motors acknowledges the growing significance of Chinese electric vehicles (EVs) in the market. In the UAE, where the government is promoting EVs, the competition is fierce in the EV sector. The government is planning to open 800 charging stations for EVs untill 2024, and companies like Arabia Taxi have already added 200 Tesla vehicles to their fleets. Even the Road and Transport Authority (RTA) is testing the Skywell SUV E5 model, reflecting the UAE's clear vision for green transportation.

In the Middle East market, competition is high, with new brands like Skywell, Kaiyi, Geely, and Changan emerging every day. Despite the challenges, Legend Motors is committed to staying ahead of the game by offering top-quality vehicles, including EVs, to its customers. With a strong track record in the vehicle distribution market, Legend Motors is well-positioned to thrive in the rapidly expanding EV market, thanks to its dedication to providing excellent service and meeting the changing needs of its customers.