Cheaper imports overshadow EU construction costs

Car makers operating in Europe's traditional automotive manufacturing hubs, including Germany and the UK, are expressing concerns about the expenses involved in developing and manufacturing cars and automotive technology locally. They are particularly worried about competition from cheaper and more profitable Chinese electric cars.

Thomas Schaefer, head of the Volkswagen brand, recently stated in an interview with Autocar at the Munich mobility show that they want to invest in technology, batteries, and chips. However, he also pointed out that Europe is lagging behind in this game. Schaefer specifically mentioned the high costs associated with battery plants, which are hindering their plans to bring key investments onshore as electric vehicles (EVs) continue to gain popularity.