Faced with growing competition from China, the German automotive industry may be reconsidering its previously reserved approach to trade policy. A spokesperson told the “Handelsblatt” that the Association of German Automobile Manufacturers (VDA) is currently reviewing whether an adjustment to its positions is necessary. The industry is calling on China to approach Europe with constructive proposals and to decisively and swiftly halt what it perceives as unfair, distorting competitive behavior. Until now, the sector has strongly advocated against additional trade barriers.
Last month, for example, VW Group CEO Oliver Blume demanded that existing EU countervailing duties on Chinese electric vehicles be extended to cover plug-in hybrids. This concern stems from growing overcapacity and exports from China into Europe, driven by the current sluggishness of the world’s largest automotive market.
Discussions within industrial circles are also focusing on expanding potential protective measures to include other types of hybrid powertrains. Across various propulsion types-including non-EU countries like the UK and Norway-the market share held by Chinese manufacturers in Europe has risen sharply, leaping from 0.5 percent in 2021 to nearly ten percent.
A shift in the VDA’s policy could also influence the German government. At the EU level, a review period is running in October aimed at preparing concrete trade protection measures against China.
