Chinese oversupply still poses a major threat to the EU’s car industry, single market commissioner Stephane Séjourné told MEPs on Tuesday.
Benjamin Fox
The EU’s car industry still faces “mortal danger” from Chinese excess production of electric vehicles, single market commissioner Stephane Séjourné told MEPs on Tuesday (7 July).
Speaking in the European Parliament, Séjourné accused China of pursuing a “predatory strategy” in the electric car sector by dumping its excess production capacity on the European market.
“The result is undeniable: loss of market share for our manufacturers and massive imports of Chinese models, which now represent over 15 percent of the electrified vehicle segment in Europe,” he said.
The European automotive industry is operating below capacity, and the risk of mass layoffs is increasing, Séjourné told lawmakers.
China’s oversupply of cars subsidised by Beijing to the tune of €10,000 per vehicle was forcing European plants to operate well below capacity and fuelling the risk of large-scale layoffs, said Séjourné.
The charge of deliberate over-production and supply to depress prices and drive European rivals out of business has been made against China across a series of other industries including steel and solar panels.
Since taking office in July 2024, the von der Leyen commission has promised to protect the EU’s car industry – which is responsible for an estimated 13 million jobs across the bloc.
The EU executive launched a ‘strategic dialogue’ with the car industry at the start of last year amid growing concerns among industry leaders about job losses and factory closures as the bloc’s high-profile marques, such as Volkswagen, BMW and Mercedes struggle to compete with Chinese carmakers.
The commission’s trade commissioner Maroš Šefčovič has also complained that major Chinese investment in EV production in the likes of Morocco and Egypt, who have association agreements with the EU, is allowing Chinese brands such as BYD and Geely avoid hefty import tariffs.
