The new rules aim to ensure EU subsidies and government procurement benefits Europe\u2019s industry, rather than helping manufacturers from other countries.<\/p>\n
The executives were speaking at the Paris motor show, which was attended on Monday by the French president, Emmanuel Macron. Brands including Li Auto, GAC and Chery were among a host of Chinese manufacturers exhibiting in Paris with ambitious European expansion plans.<\/p>\n
Europe\u2019s car industry is under enormous pressure as it copes with lower demand than before the coronavirus pandemic, while also investing tens of billions of euros in shifting production to electric vehicles (EVs). At the same time, Chinese carmakers\u2019 market share has soared as the transition to EVs opens the door to new entrants.<\/p>\n
The EU confirmed on Monday<\/a> it would limit the number of hybrid electric vehicles imported from China to 350,000 cars a year. The EU expects that the quota, which will come into force in December, will halve China\u2019s market share, which now stands at 6% in a landmark four-year agreement<\/a> made in Beijing last week.<\/p>\n The Made in Europe rules are another plank of the EU\u2019s response to the rise of China<\/a> in key manufacturing industries such as carmaking and chemicals.<\/p>\n Under the proposed Industrial Accelerator Act (IAA), cars will have to be \u201cmade in Europe\u201d, and contain enough European parts and materials, to continue to qualify for EV grants and to be bought by public bodies in the EU. However, automotive manufacturers and politicians are haggling over the details.<\/p>\n If Brussels sticks to a strict definition of \u201cEuropean\u201d as being only EU countries, Britain risks being left out \u2013 prompting intense lobbying from UK car industry and government to be included.<\/p>\n Stellantis is among the manufacturers that still has a British factory, its facility in Ellesmere Port, Merseyside, which produces small vans.<\/p>\n \u201cI think that UK somehow needs to be equalised to the EU 27,\u201d said Cappellano, referring to the bloc\u2019s 27 member states. \u201cWe have a lot of relationship, we have footprint. Historically UK has been very close to the European market.\u201d<\/p>\n Europe\u2019s main automotive lobby groups ACEA and Clepa have also put their weight behind the UK to be included. Some parts of European manufacturing, including France\u2019s industry minister<\/a>, had argued that the UK should be left out given Brexit.<\/p>\n Provost said there was \u201cno other choice\u201d but a deal between the UK and EU. However, he said the UK would also have to stop allowing Chinese cars in without limits.<\/p>\n \u201cOn your side, you have also to take decisions,\u201d he said. \u201cIf the UK is willing to join the European ecosystem, this is to have an industrial ambition \u2026 to keep a strong automotive industry.\u201d<\/p>\n
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