EU launches strategic dialogue to secure future of automotive industry

January 20, 2025 — The European Commission has announced a major initiative to safeguard the future of the European automotive industry amidst a period of significant transformation. As announced by President Ursula von der Leyen to the European Parliament last November, a Strategic Dialogue with key stakeholders will officially begin on January 30th.

The global car industry is fiercely competitive, with established giants from the US, Europe, and Japan vying for market share against rapidly emerging players, particularly from China and South Korea.

Chinese car manufacturers are increasingly making their presence felt in the European Union, posing a growing competitive challenge to established European brands. These companies are leveraging several key advantages to gain market share.

Firstly, they often offer vehicles, particularly electric vehicles (EVs), at more competitive price points compared to their European counterparts. This is often due to lower production costs and established supply chains for batteries and other EV components in China.

Secondly, Chinese manufacturers are rapidly improving the quality and technology of their vehicles, with some models offering comparable or even superior features in areas like infotainment and connectivity.

Recognizing the vital role the automotive sector plays in European prosperity, contributing approximately 7% to the EU’s GDP and employing over 13 million people, the European Commission acknowledges the urgent need to address the challenges it faces. The Commission states that these challenges include digitalization, decarbonization, increasing global competition, and a shifting geopolitical landscape.

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