Etiqueta: Tesla Model 3

Europe's car industry faces an acute demand shock from Chinese overcapacity & US tariffs. Instead of bailouts & regulatory rollbacks, member-states should co-ordinate buy-European EV subsidies & revive internal demand.

Europe’s car industry faces a perfect storm. Chinese car exports are surging, European producers are being squeezed out of global markets, US tariffs are rising, and domestic demand remains 20% below pre-pandemic levels. Instead of sliding into a costly muddle of regulatory rollbacks, bailouts, and fragmented national subsidies, the EU should harness its single market - 450 million consumers and a vast corporate sector - to drive demand for Europe-made vehicles. That means co-ordinating consumer subsidies with a buy-European clause, applying it to both private and corporate fleets, and using it as a platform for reciprocal EV-subsidy agreements with trusted trade partners. A window for action is open: Germany, France, Italy, and Spain all need to renew their EV-support schemes in the coming months. Together, they represent 70% of EU car registrations—and could launch broader European coordination.

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