EU-China hybrid car deal won’t really help European carmakers
The quota helps neither consumers nor companies in the long run. EU carmakers should up their game by leveraging China’s supply chain
The quota would likely shift China’s product mix towards the premium segment to maximise the value of the 350,000 hybrid cars allowed per year, a cap which can rise by only 6 per cent a year during the four-year agreement.
Europe’s challenge goes beyond hybrids to all electric vehicles. Unlike the earlier mass-market Japanese and Korean imports which largely complemented the premium German brands, Europe can expect high-end EVs from China offered at a fraction of the price of their European counterparts, while potentially delivering superior features and performance.
