EU Commission President Ursula von der Leyen has initiated an \"anti-subsidy probe\" targeting electric vehicles from the Chinese mainland. 🚗🌍 In her annual address to the EU parliament, von der Leyen expressed concerns over the influx of affordable electric cars, attributing their low prices to substantial state subsidies.
However, industry experts argue that it's the technological innovation of Chinese EVs that drives their global market leadership. For instance, the Chinese EV brand NIO's Power Swap Station can replace a vehicle's battery in just three minutes, allowing a station to perform 312 swaps daily. Additionally, the Chinese EV battery maker Contemporary Amperex Technology Co., Ltd. (CATL) unveiled a lithium iron phosphate battery in August that can power cars for 400 kilometers in only 10 minutes.
Chinese manufacturers also excel in automotive software, with BYD submitting numerous patent applications across Europe, the U.S., and Japan. Beyond technology, competitive pricing stems from domestic production, with a majority of components made in-house, saving costs and boosting manufacturing efficiency. 📈
These advantages have led to a significant presence of Chinese EVs in Europe, with Inovev statistics showing an increase from 6% to 8% of new EV sales this year. Moreover, nearly half of the Chinese mainland's new-energy vehicle exports in 2022 went to the European market.
The EU's probe could potentially disrupt global supply chains and impact the European automotive industry's long-term growth. As the electric vehicle landscape evolves, the balance between competition and fair market practices remains a hot topic. ⚡🔍
