- The future of European auto manufacturing is at stake with German companies like Mercedes-Benz, BMW and Volkswagen losing market share in China to local manufacturers like BYD. Chinese automakers are also selling cars under the British brand MG, SAIC who have cornered 5 percent of the European electric vehicle market.
Meanwhile, European carmakers are hustling to build EV supply chains. But guess what, EU is losing out to their own ally, the US. US has put in place a massive structure of incentives to attract EV battery manufacturers and other EV components. Any manufacturer who is not headed to China, South Korea and other Asian countries, is heading to the US which has provoked a massive subsidy race.
Europe has a stronger demand for EV compared to the US which is Europe’s strength but if Europe is unable to ramp up its EV supply chain then the probability to lose its competitiveness to the US could be dangerously high. Already Volkswagen is committed to establish manufacturing facility in Canada which has agreed to match the incentives available in US.