China’s EV surge reshapes Europe’s auto industry

The European automotive industry is undergoing major changes due to increasing competition from China and rising margin pressures. Global auto sales hit a peak of 94 million in 2017, with estimates for 2025 expected to be around 91 million, as high financing costs and prices continue to affect affordability. Car sales in Europe are down 10% since 2017, compared with 1% for the rest of the world; production and capacity utilisation have also taken hits. European manufacturers face intense pressure from China, which produces electric vehicles (EVs) and hybrid cars with strong technology at a low...