By WhichEV
A deepening dispute over tariffs on electric vehicles (EVs) has led to escalating tensions between China and the European Union, as both economic giants struggle with the changing dynamics of the global car market.
China, now the world’s largest car producer, has rapidly embraced EV manufacturing, treating the automotive industry much like its electronics sector — innovating swiftly and maintaining tight cost controls. The tariffs imposed were designed to strengthen EU car makers. But as tariffs have come into play, Chinese consumers have backed away from high-end European brands – with devastating effects on the financials of Mercedes, BMW and others.
Chinese brands like Zeekr, BYD, Nio and Xiaomi are reshaping the global electric vehicle market, launching high-spec, affordable EVs that pose significant challenges to traditional European carmakers. By combining advanced features with competitive pricing, these companies have leveraged rapid innovation cycles, honed from their experience in the electronics sector, to appeal to both local and international consumers.
