'We are ready to engage': Europe's biggest carmakers brace for China's EV challenge
CNBC 2023-09-04 11:58:39 • 6 mins
Key Points
- Christophe Prillat, CEO of car parts manufacturer Valeo, said that China is now the company's main market, as the former "barrier to entry" of the combustion engine has been removed.
- Europe's competitive advantage is at risk, as demand for battery electric vehicles grows, and Chinese firms benefiting from state subsidies are able to produce battery cells at lower cost.
BMW CEO Oliver Zipse speaks during the presentation of the new BMW "New Class" during an event ahead of the IAA motor show in Munich.
Picture Alliance | Picture Alliance | Getty Images
Europe's biggest car manufacturers are wary of the competitive threat posed by new Chinese companies, as the automobile industry moves towards electrification, multiple CEOs told CNBC in recent days.
Europe's dominant position in the automotive sector was established over many decades through its capacity to build superior combustion engines. But this competitive advantage is becoming less pivotal, as demand for battery electric vehicles grows, and Chinese firms benefiting from state subsidies can produce battery cells at a lower cost.
