Western car makers look to slash EV costs to fight Chinese 'invasion'

PARIS : Western automakers are fretting about an"invasion" of cheap Chinese electric cars in Europe, prompting France's Renault to say on Thursday it was aiming to slash production costs for its electric models by 40 per cent.

"It's clear we are in competition and that time is of the essence, but that's the business we are in," he said. In 2022, Chinese car makers had a 9 per cent share of Europe's EV market, nearly double the previous year's figure, according to forecasts by consultancy Inovev. And the pace is picking up. That is having an impact. According to researchers Jato Dynamics, Tesla and SAIC's MG were the biggest market share winners in Europe during the first half of this year.Carlos Tavares, the CEO of Peugeot-to-Fiat carmaker Stellantis, warned on Wednesday the competition with Chinese manufacturers would be"extremely brutal".

Tavares said Western car makers needed to use"the same weapons" as their Chinese rivals, sourcing parts in lower cost countries and striking partnerships with battery suppliers that offer the best combination of energy, cost and weight.

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