Just two years ago, Germany voted against the EU’s proposed tariffs on Chinese-made EVs largely because its carmakers feared retaliation in China where they sold around a third of their new cars.
Volkswagen has taken a pounding in China over the last six years as local brands like BYD have taken share. It has been joined more recently by BMW and Mercedes, which now face local premium Chinese brands keen on pinching their customers.
But their problems have not stopped there, as China’s automakers are growing rapidly in Europe, the home turf of those very same German automakers.
Now German automakers alongside other titans of German industry are pressing Chancellor Friedrich Merz to take a tougher line with Beijing, with companies calling for stronger action to address what they describe as unfair competition from Chinese rivals.
If an EU vote comes up on tariffs for Chinese-made plug-in hybrids, it will be interesting to see which way Germany votes this time around.
For years, China has gone along with whatever safety issues have been championed in Europe or the U.S. market.
But with a huge recall last month pushing automakers to fix door safety issues, China is now spearheading new auto safety standards for some of the world's most advanced cars.
Shortly after that major recall, Chinese regulators ordered automakers to file proactive recall plans for any defects uncovered in self-audits, as part of a year-long campaign to improve vehicle quality and safety in the world's largest auto market.
While Chinese automakers have rolled out features like fast-charging batteries and advanced self-driving software with breathtaking speed, analysts say they have often prioritised user experience and aesthetics over other considerations.
Now Chinese regulators appear to be moving the industry in a new direction, increasing oversight and introducing rules requiring automakers to track the condition and repair history of all EVs sold.
Setting the tone on auto safety matters, as it moves the industry’s center of gravity closer to Beijing.
Fast laps:
- VinFast has suspended plans to manufacture three EVs in India and ordered suppliers to halt work on the projects while it reassesses costs, according to two sources and a company memo reviewed by Reuters — year after the Vietnamese automaker entered a crucial growth market.
- General Motors plans to assemble a heavy-duty pickup at an Ontario plant as part of a tentative deal with a key union that would pump C$1.1 billion ($791.3 million) into Canada's auto sector as it reels from U.S. tariffs, according to a union bargaining report.
- Chinese EV maker BYD posted its first rise in quarterly profit in more than a year, helped by a surge in exports that offset weak domestic sales.
- Toyota said its global vehicle sales and production fell in July, weighed by declines in China, the United States and the Middle East, which offset a stronger performance in Japan.
- Hyundai will launch or refresh more than 100 vehicles globally by 2030 and expand its U.S. hybrid lineup, as the South Korean automaker seeks to lift its operating profit margin above 9%.
- Chinese automakers launched a raft of electric, hybrid and pickup truck models at South Africa's biggest auto show, betting on growing demand for electrified vehicles and seeking to challenge established rivals in the country's highly competitive pickup market.
