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Europe eyes cost parity with Chinese EV makers by 2028-2029
The plan hinges on implementing “Made in EU” requirements under the Industrial Accelerator Act and keeping European access to Chinese technology, Citi’s autos research said.
European policymakers have been tracking the competitive threat from Chinese carmakers, which have surged in Europe with lower prices and increasingly advanced technology, raising fears that European automaking jobs could be displaced. Still, some industry insiders say the gap that looked difficult to close may be narrowing, with cost parity possible by 2028 or 2029.
The automotive sector is described as a crown jewel of EU industrial output, supporting more than 13 million jobs directly and indirectly, according to SCMP Economy. However, the story notes that earlier concerns may have been premature if European brands can reduce their cost disadvantage.
Harald Hendrikse, European head of autos research at Citi, outlined a path to parity that depends on two conditions: correct implementation of “Made in EU” requirements in the proposed Industrial Accelerator Act, and continued European access to Chinese technology and know-how. SCMP Economy reports that Hendrikse pointed to China’s openness to working with Western manufacturers, suggesting newer Chinese technology could reach Europe quickly.