With Chinese-built electric vehicles coming in, by 2025, Europe has the potential to become a net importer of cars.
According to a recent study by Pwc, Europe is currently moving in the direction of having 800,000 Chinese-built vehicles available on the European market in less than three years. If this prediction were to turn into reality, Europe would become a net importer of cars. This would also increase the import surplus to over 221,000 cars in 2025.
The back story behind such forecasts is the fact that not only are Chinese brands ramping up to significantly increase their share on the European market within the next few years, but many European brands are currently moving their vehicle production to China to lower manufacturing costs.
Although most Chinese car brands are still relatively unknown on the European market and have had their fair share of challenges when trying to establish their footing, this time they come with a competitive advantage in the form of fully electric vehicles. Meanwhile, the ongoing supply chain challenges and local production costs are pushing Western brands such as Tesla, the Renault Group, BMW and many others to shift their manufacturing processes to China.
At this rate, the European car market is definitely set to see some strong newcomers in the upcoming years.
Source: europe.autonews.com