China’s electric vehicle manufacturers, such as Zeekr, are expanding in Europe with offerings that are faster to market and technologically superior to traditional European carmakers. These companies benefit from highly automated production and advanced software capabilities. As Europe pushes for zero-emission vehicles by 2035, traditional car brands face challenges in adapting rapidly enough. Analysts note a decade lag in production capacity and supply chain control in Europe, with tariffs seen as a temporary measure that could hinder long-term growth and localization of production in the region.
All new cars sold in the UK and EU must be zero-emission by 2035, and Europe's car industry is under huge pressure to adapt. Chinese firms are nimble, fast and technologically advanced - especially in software, where European firms have struggled.
Tariffs insulate the baby, so the baby never learns to walk. The price of entry for Chinese brands should be localisation - build here, employ here, invest here.
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