The European Union’s automotive sector is facing a state of “mortal danger” due to the excessive production of electric vehicles in China, according to internal market commissioner Stephane Séjourné. During an address to MEPs in the European Parliament on Tuesday, 7 July, Séjourné characterized China’s actions as a “predatory strategy” aimed at offloading surplus capacity into the European market.
Séjourné emphasized that Beijing is providing subsidies amounting to €10,000 per vehicle, a move that is forcing European manufacturing plants to operate well below their potential capacity. This imbalance is significantly increasing the threat of large-scale layoffs across the bloc. He noted that the European automotive industry, which supports an estimated 13 million jobs, is currently struggling to compete with Chinese manufacturers.
This is not the first time China has faced accusations of deliberate over-production to suppress global prices and undermine competitors; similar concerns have been raised regarding the steel and solar panel industries. Since the von der Leyen commission took office in July 2024, there has been a firm commitment to safeguarding the EU’s car market. As part of this effort, the EU launched a “strategic dialogue” with industry leaders early last year to address rising concerns over factory closures and job losses, particularly as major European marques like Volkswagen, BMW, and Mercedes face intense pressure.
Furthermore, trade commissioner Maroš Šefčovič has raised alarms regarding Chinese investment strategies in countries like Egypt and Morocco. By establishing electric vehicle production facilities in these nations—which maintain association agreements with the EU—Chinese brands such as BYD and Geely are reportedly bypassing significant import tariffs meant to protect the European market.
