The Stellantis CEO Carlos Tavares believes that increasing the customs tariffs on electric vehicles from Chinese brands destined for Europe and the US will not prevent Western car manufacturers from restructuring their businesses to offer more competitive prices.
Considering the tariff increase a “major trap”, Carlos Tavares stated to “Reuters” that he expects a major battle with Chinese rivals in the European electric vehicle market, which will have significant consequences for employment and production.
According to the Stellantis CEO, the new tariffs will fuel inflation in the regions where they are imposed. Furthermore, the “battle” with Chinese competition will not be easy as Chinese brands have a cost advantage of 30% over Western rivals.
“This will not be easy for dealers. It will not be easy for suppliers. It will not be easy for anyone. As we know in Europe, everyone talks about change, as long as the change is for others”.
According to Carlos Tavares, Chinese brands are on track to sell 1.5 million vehicles in Europe, thus securing a 10% market share locally.
“If we let this participation of Chinese brands grow… then it is obvious that we will create an excess of capacity, unless we fight against this competition.”, added Carlos Tavares.
It should be noted that Stellantis announced last week that it will start selling in Europe the models of its joint-venture, Leapmotor, starting in September.
