Study shows German autos under threat from China imports, Germany saw a 75% jump in imports of vehicles and vehicle parts from China

[beijingwalker]

Study shows German autos under threat from China imports, Germany saw a 75% jump in imports of vehicles and vehicle parts from China​

Published Sep 15, 2023 15:56

© Reuters.

Germany saw a 75% jump in imports of vehicles and vehicle parts from China, whereas trade in the opposite direction declined, highlighting the growing challenges faced by Europe's largest automotive manufacturing hub.

According to a report by the German Economic Institute (IW), multiple Chinese automotive brands have made their entry into the German market this year, bringing the total to eight. However, it's worth noting that these brands still constitute only a 1.5% share of the vehicles sold in the country.

The release of this study comes just days after the European Commission announced the launch of an investigation to determine whether imposing punitive tariffs is necessary to safeguard European Union (EU) producers from the influx of cheaper Chinese electric vehicle imports, which the EU says benefits from state subsidies.

The study also revealed a 21% drop in German vehicle and parts exports to the world's second-largest economy during the first half of the year. This decline accounted for a substantial three-quarters of the overall decrease in exports to China, which exceeded 8%.

"The business model that used to support car production in Germany - the intercontinental export of high-quality vehicles - is coming under increasing pressure," authors Juergen Matthes and Thomas Puls wrote in the study.

"German manufacturers have been relocating more and more production to China for years, currently also increasingly in the previously resistant premium class," they added.

Germany, at times seen as a “weak link” in Western attempts to decouple from China, has over the past year joined the broader push to reduce dependence on China.

The IW study, titled "Is Derisking Beginning?" suggests that a closer examination of the overall 17% decline in German imports from China during the first half of the year reveals the initial indications of Germany gradually reducing its dependency on China.

Study shows German autos under threat from China imports By Investing.com

Study shows German autos under threat from China imports

ng.investing.com

 

[beijingwalker]

The coming China's global auto onslaught spares no one.

 

[Viet]

Seriously, Germany will impose harsh measures against Chinese invasion. 100 percent tariffs is a good start.

 

[beijingwalker]

Seriously, Germany will impose harsh measures against Chinese invasion. 100 percent tariffs is a good start.

We dare them, China is always the most important market for German cars, if they do it, China will reciprocate and Germany will suffer way more than China.

 

[etylo]

Seriously, Germany will impose harsh measures against Chinese invasion. 100 percent tariffs is a good start.

China will do the same to German cars in China, you can expect, and German car companies will be finished. All these EU hypocrites, can't take fair competition.

 

[Viet]

China will do the same to German cars in China, you can expect, and German car companies will be finished. All these EU hypocrites, can't take fair competition.

It’s inevitable. VW hardly makes any profits now in China. Same for other German carmakers. Chinese turn nationalistic so or so. Let’s start a trade war my friend. Decoupling, de-globalization is the new trend.

 

[etylo]

It’s inevitable. VW hardly makes any profits now in China. Same for other German carmakers. Chinese turn nationalistic so or so. Let’s start a trade war my friend. Decoupling, de-globalization is the new trend.

You may get what you wish for, only if Germans think like you.

 

[TriptiD]

We dare them, China is always the most important market for German cars, if they do it, China will reciprocate and Germany will suffer way more than China.

The only reason to buy Chinese cars over German ones is price and lower prices vehicles are far more susceptible to higher tariffs than lower priced one. German cars are increasingly manufactured in China anywa, so they would not be affected by tariffs. If Chinese companies want to move production to Germany to get around the tariffs, Germany would be happy but the cost of manufacturing will increase, and no one will buy an Chinese car over an equivalent German one if they are priced the same.

 

[Viet]

We dare them, China is always the most important market for German cars, if they do it, China will reciprocate and Germany will suffer way more than China.

Tariffs, restrictions are coming I told weeks ago. Chinese car exports to the EU make up Tesla, Volvo, and MG. Chinese own brands are minuscule. It’s better to stop Chinese invasion now before too late. Germany will survive. ASEAN is a rising market.

 

[beijingwalker]

The only reason to buy Chinese cars over German ones is price and lower prices vehicles are far more susceptible to higher tariffs than lower priced one. German cars are increasingly manufactured in China anywa, so they would not be affected by tariffs. If Chinese companies want to move production to Germany to get around the tariffs, Germany would be happy but the cost of manufacturing will increase, and no one will buy an Chinese car over an equivalent German one if they are priced the same.

I bet against Germany daring to start an auto trade war with China, Germany is highly dependent on both car imports and exports.