Europe's era of netting profits from China through car exports is coming to an end 😄

The traditional export advantage of German automakers in China may reverse this year. In 2024, Europe is expected to import 440,000 China-made vehicles, while European manufacturers will export only 325,000 cars to China, with 295,000 coming from Germany. The situation was the opposite last year.

China's EV market is growing rapidly with significantly increased market share, while German manufacturers have failed to notably expand their market presence in China. The study authors doubt that the EU's punitive tariffs on Chinese EVs will benefit European manufacturers in the long run. With Chinese manufacturers' technological advancements, the old purchasing rationale for "Made in Germany" is gradually losing its appeal. Experts predict Chinese brands will achieve success in Germany similar to Japanese and Korean brands, with premium manufacturers being relatively better positioned to handle the challenges while mass-market manufacturers like Volkswagen may face greater pressure. With weak EV sales, Germany is once again discussing combustion engine vehicles (indeed they can't accelerate quickly and lack competitiveness), as Germany's pure EV sales continue to decline consecutively.