Chinese brands take over European market, 42,000 people lose their jobs

The European Commission wants to establish an economic alliance with the United Kingdom, Japan and South Korea to prevent the rapid expansion of China’s automotive industry in Europe, TodayPress TV reports, citing Handelsblatt.

Sources within the European Commission said the partners are planning to keep their markets open to one another and cooperate on the supply of critical raw materials.

Cars produced in the United Kingdom, Japan and South Korea could receive the same benefits in the EU as European-made vehicles. This would include subsidies for purchasing electric vehicles and tax incentives for company cars. At the same time, Brussels is considering the possibility of imposing protective tariffs if imports increase sharply.

The move is prompted by the rapid growth of Chinese manufacturers’ market share in Europe. According to Handelsblatt, Chinese manufacturers accounted for 60% of all hybrid vehicles imported into the EU in the first quarter of 2026. Since May, Chinese brands have for the first time collectively sold more cars in Europe than the major Japanese automakers.

The situation is particularly sensitive for Germany’s automotive industry. The sector has lost more than 42,000 jobs over the past year.

Giymat Mahir