Written by Cláudio Afonso | LinkedIn | X
Stellantis CEO Carlos Tavares said on Wednesday that a price battle with Asian EV makers would be “very tough” as Chinese manufacturers are on track to reach a market share of 10 percent in Europe.
At Reuters ‘Automotive Europe event, the group’s chief executive said the European governments don’t want to face a reality right now following the recent 400 percent hike from the US on China-made electric vehicles.
“When you fight against the competition to absorb 30% of cost competitiveness edge in favour of the Chinese, there are social consequences. But the governments, the governments of Europe, they don’t want to face that reality right now,” he said.
Earlier this week, U.S. Treasury Secretary Janet Yellen has called on the European Union to collaborate with the United States in addressing the surge of Chinese green-tech exports, warning that the influx threatens global manufacturing sectors.
In the European market, Stellantis anticipates a major battle with competitors from China warning for a possible “overcapacity”.
“If we let the share of the Chinese OEMs grow … then it’s obvious that you are going to create an overcapacity, unless you fight against that competition,” Tavares said.
Brussels is expected to decide in June on whether to follow the U.S. in imposing additional tariffs on China-made electric vehicles.
The US administration has increased the tariffs to 25 percent on steel and aluminum, 50 percent on semiconductors, 100 percent on electric vehicles, and 50 percent on solar panels.
In a post on the social media platform X, Joe Biden said that “China is determined to dominate these industries” while enhancing that he is “determined to ensure America leads the world in them”.
Written by Cláudio Afonso | LinkedIn | X
