
Morgan Stanley analysts note a strategic pivot from exporting vehicles to local European production.
Chinese automakers plan to invest billions in local European factories or utilize idle plants to sustain sales amid new import quotas for hybrid vehicles, according to Morgan Stanley.
AI-generated summary
Beijing and Brussels recently agreed on an import quota for Chinese-made hybrid vehicles.
They plan to either splash out billions of yuan to set up their own factories or tap international marques’ idle plants to build their vehicles, looking to sustain a sales boom in one of the world’s major automotive markets.
“Global growth shifts from exporting vehicles to Europe to producing them locally, from price-led market share gains to margin-led positioning, and from a single export channel to a multimarket footprint,” Morgan Stanley analysts said in a research note issued last week after Beijing and Brussels agreed on an import quota for Chinese-made hybrid vehicles.
“Such a development would favour Chinese EV leaders with the scale, balance sheets and European manufacturing plans already in motion to pivot quickly.”

The State Council Information Office held a press conference on the 20th. Wang Weiming, chief engineer of the Ministry of Industry and Information Technology, introduced that the Ministry of Industry and Information Technology, together with the Ministry of Public Security, the Ministry of Ecology and Environment, and the State Administration for Market Regulation, have studied and compiled the "Notice on Further Strengthening the Management of Innovative Design and R&D Testing and Verification of Automobile Products", focusing on improving the safety and technical performance of automobile products from three aspects.

Toyota has proposed that the European Union include fuel vehicles that exclusively use eligible renewable fuels within the scope of zero-emission vehicle certification to retain the development space of internal combustion engines in the carbon reduction transition. The company has been conducting six-month trials with BMW, Bosch and Repsol, but policy implementation faces challenges such as regulation of fuel use.

As Chinese electric car companies aggressively set up factories in Thailand, their market share soared from nearly zero four years ago to more than 80%, squeezing traditional Japanese car companies and severely damaging the local component supply chain and labor rights. A Thai think tank bluntly stated that the negative impact was greater than expected, and its experience may serve as a reference for Europe and the United States.

The authoritative vehicle safety assessment "Euro NCAP" announced that physical buttons will be included in the safety scoring standards, requiring turn signals, wipers, hazard warning lights, horns and SOS buttons to retain easy-to-operate physical designs. Insisting on touch controls will affect the five-star rating.

The Economic Daily commented that Chedi had a conflict of interest and lacked credibility in the Zunjie V800 brake pedal breakage incident. It warned the media not to weaponize evaluations, otherwise it would damage the ecology of China's new energy vehicle industry. It also pointed out that the controversy has escalated from product safety to a confrontation between national brand image and public opinion orientation.

When the car platform understands Chedi actually tested the Zunjie V800, it was found that the brake pedal was broken, which raised questions about the quality. The Ministry of Industry and Information Technology and three other departments have set up a joint investigation team. The incident subsequently evolved into a social controversy regarding public opinion control, patriotic brand image and consumer supervision rights.