The market share of electric vehicles exported from China to Germany more than tripled in the first quarter of this year. Foreign media believe that this is a worrying trend for German car companies that are struggling to keep up with their fast-growing Chinese counterparts.
China accounted for 28 percent of electric vehicles imported into Germany from January to March, compared with 7.8 percent in the same period last year, the German statistics office said on May 12.
In China, Volkswagen and other global automakers are struggling to keep pace with the accelerating move to electrification, leaving established global brands in a bind.
In the first quarter, the market share of Chinese cars in Germany tripled
“Many products for everyday life, as well as products for the energy transition, now come from China,” said the German statistics office.
For example, 86 percent of laptops, 68 percent of smartphones and phones and 39 percent of lithium-ion batteries imported into Germany in the first quarter of this year came from China.
Since 2016, the German government has become increasingly wary of China as its strategic rival and largest trading partner, and has designed a series of measures to reduce dependence when reassessing bilateral relations.
A December study by the DIW Institute found that Germany and the entire European Union depend on China for supplies for more than 90 percent of rare earths. And rare earths are crucial to electric vehicles.
Chinese-made electric cars pose the biggest risk to European automakers, with potential to lose 7 billion euros a year by 2030 unless European policymakers act, according to a study by German insurer Allianz. Profits, lost more than 24 billion euros in economic output, or 0.15% of EU GDP.
The report argues that challenges need to be met by imposing reciprocal tariffs on imported cars from China, doing more to develop power battery materials and technologies, and allowing Chinese automakers to manufacture cars in Europe. (compile synthesis)
Post time: May-15-2023