The intense clash of automakers versus China's market dominance
At the Paris Motor Show, the world's leading automakers convene every two years for the oldest international gathering. In 2024, the event will be characterized by fierce competition between the rapidly advancing Chinese manufacturers and the struggling European sector. As per Lutz Meier, editor at Capital, in the podcast "Hour Zero," there's a significant technological shift taking place, encompassing advancements in electric drive, the importance of software in vehicles, design, and entertainment. "Frankly, the Westerners aren't doing so well," Meier observes.
According to Meier, an industry veteran, European manufacturers are encountering escalating hurdles not only on the Chinese market, where they face intense rivalry, but also in their domestic territories. "Chinese manufacturers are under immense pressure to excel in foreign markets," Meier admits. "It's a merciless struggle for market share and preference."
The European Union's decision to impose additional tariffs on Chinese electric cars is met with significant industry disapproval. "Some argue vehemently against being shielded in this way, fearing retaliation from the Chinese government against their operations," Meier reveals. "This is particularly relevant for the Germans, who have a historically prominent market presence in China."
Despite this apprehension, the automotive sector anticipates substantial political backing. Primary emphasis is placed on guaranteeing sustained subsidies for electric cars and offering permanent incentives to buyers. "The general sentiment is: Politics should guide the industry out of this predicament," Meier states. "Failing that, there'll be casualties. Factories will close, jobs will be lost, and suppliers will go bankrupt."
Give "Hour Zero" episode a listen:
· Why car shows remain popular
· Which European nations are still thriving
· Who might emerge victorious in the end
New episodes available directly at RTL,Apple, or Spotify, or simply via Google**.
The struggling European sector is facing intense competition from Chinese car manufacturers, who are under pressure to excel in foreign markets. The competition between Chinese manufacturers and the European sector is expected to continue at the upcoming Paris Motor Show.
