The winners can be those that construct bridges, not partitions, says Gambardella.
MUNICH, Germany, Sept. 10 (Xinhua) — Now is the proper time for Chinese and European carmakers to strengthen cooperation, as the worldwide vehicle business is present process a profound transformation, Luigi Gambardella, president of the Brussels-based worldwide digital affiliation ChinaEU, informed Xinhua in an unique interview.
Gambardella, who careworn that the winners can be those that construct bridges, not partitions, famous that the rise of Chinese electrical automobiles in Europe has been exceptional.
In July 2025, Chinese carmaker BYD reportedly as soon as once more outsold Tesla within the European market. Chinese manufacturers corresponding to NIO and SAIC have additionally grow to be more and more seen on European roads.
Some Chinese producers have already invested in constructing factories or forming joint ventures in Europe, whereas firms together with Xiaomi and Li Auto have chosen to ascertain R facilities to organize for future market growth.
He identified that, on the one hand, Chinese carmakers have developed price competitiveness via mastery of the complete worth chain — from battery innovation to large-scale meeting. On the opposite hand, their pace of innovation outpaces that of European, American, and Japanese firms, with new fashions reaching the market extra shortly and with a number one place globally in battery expertise.
“Chinese carmakers not only provide a price advantage but also appeal to younger European consumers by combining advanced technology with user-oriented design,” Gambardella stated.
In his view, uncertainty stemming from U.S. commerce coverage is weighing closely on the European automotive business and having far-reaching penalties. Under the newly concluded U.S.-European Union (EU) commerce settlement, Washington now imposes a 15 p.c tariff on automobiles and auto components exported from the EU, up from the earlier 2.5 p.c.
“This is nothing short of a severe blow to European automakers and their supply chains,” Gambardella warned.
The automotive business is a pillar of Europe’s financial system, with international locations corresponding to Germany, France, and Italy closely depending on its huge provide chain, which immediately or not directly helps thousands and thousands of jobs.
He cautioned that U.S. tariff coverage will drive European producers both to soak up the upper prices themselves — additional squeezing revenue margins — or to move them on to customers, leading to a lack of market share.
Even extra regarding, the stress won’t be restricted to carmakers alone. Upstream suppliers of elements and downstream distributors may also be affected, making a ripple impact throughout the complete ecosystem.
Gambardella emphasised that the European auto sector is already within the midst of a difficult transition towards electrification, autonomous driving, and decarbonization — a shift that requires substantial funding in R and manufacturing.
Against the backdrop of an more and more complicated and unstable international setting, Gambardella referred to as for deeper cooperation between Chinese and European automakers — from manufacturing and battery improvement to charging networks and sustainable supplies.