According to foreign media reports, officials from the European Association of Automotive Suppliers (CLEPA) have said that any tariffs imposed on electric vehicles exported from China to Europe could backfire on European businesses.
In response to concerns that European automakers may face unfair competition, the European Commission has begun investigating subsidies and incentives for electric vehicles in China.
Benjamin Krieger, CLEPA's Executive Director, said that while such a move might be seen as a victory for European consumers, a trade war triggered by tariffs could harm European industries.
Major car manufacturers like BMW and Mercedes both export cars to China and have assembly plants there. Moreover, Chinese domestic car brands also purchase components from European suppliers, many of which have factories in China.
Speaking at CLEPA's annual innovation award event in Brussels last week, Krieger cited the thermal management system as an example, stating, "Chinese electric vehicles incorporate a lot of European technology." He said European suppliers have "compelling products found in vehicles worldwide. But tariffs on Chinese electric cars could also impact European suppliers' business."
Krieger commented, "It's good that the European Commission is looking at this broader issue, recognizing that they are taking competition from other regions seriously and feel a need to act." He further expressed doubts about whether subsidies, besides providing temporary help, could fully address the pricing issue of electric vehicles.
Electric vehicle pricing has become a critical issue in Europe, with only Citroën preparing to produce an electric vehicle priced under €25,000 domestically.
Meanwhile, some Chinese companies, like SAIC Motor's MG brand, have succeeded in Europe by driving down electric vehicle prices. Hence, Europeans are beginning to fear that cheap Chinese electric cars might one day flood and threaten European automakers. As the world's largest electric vehicle manufacturer (including BEVs and PHEVs), BYD is also gearing up to expand its presence in the European market.
Last year, Chinese brands sold approximately 100,000 electric vehicles in Europe. Western brands producing electric cars in China, including BMW, Tesla, and Renault, exported even more units to Europe than this number. A recent study by PwC found that by 2025, the total sales of cars produced in China in Europe could reach 800,000, with the majority being all-electric vehicles.
Krieger said European regulators have created a massive demand for electric cars among consumers, "but we are struggling to meet this demand ourselves." He mentioned that Chinese firms are looking to capitalize on this.
Krieger believes European regulators should focus on building infrastructure that promotes low-cost electric vehicles instead of imposing tariffs. This includes ensuring the supply of battery raw materials, something China has been working on for decades, and providing affordable, sustainable energy and power. He said, "We need to take better care of our single market."
Thorsten Muschal, the outgoing chairman of CLEPA and an executive at Faurecia, said in an interview at the award event that members of the suppliers' group might view the issue differently, depending on their clients.
Muschal remarked, "If you are a small family business supplying only European car manufacturers, your stance is clear: you'd support the tariffs. But if you're a multinational, with sales in China making up 20% to 30%, and you might be hit if tariffs are imposed, you might have a different stance. A large European supplier might have 30 to 40 plants in China. Doing business in China is part of their global strategy."
