If the US and Europe regions decide to scale back in EV investments, couldn’t this mean China OEMs will take even more market share in the long term if they instead decide to maintain the investments during this period?
Especially if they start to offer cheaper options. I would not expect the decline in demand to last for a very long time, low affordability is imo 1 of biggest problems, and Chinese cars would offer a solution for this.
China was very clever imo in 2009 to take advantage of the weakness in the US and Europe with aggressive stimulus. And after COVID shortages, it was similar to a lesser extent their market share gain.
Thus, I would not be surprised if they applied similar tactics with EVs, though this time their economy is also weak, but they are already giving them subsidies.
If Europe impose tariffs to China Imports, wouldn’t the Chinese government retalied with Europe manufactures in China?. They could end up losing more if not careful.
BYD is already planning to build plants in Mexico and Hungary to avoid these tariffs too.