EU car imports from China outpace exports for first time
EU exports to China fell 34% in 2025 to €16 billion, while imports rose 8% to €22 billion, turning a long-standing trade surplus into a deficit. In Germany, Europe’s automotive hub, exports to China dropped from €30 billion in 2022 to €13.6 billion, while imports climbed to €7.4 billion.
EY analyst Constantin Gall warned that competition from Chinese automakers, weaker export markets, high vehicle prices, and slow EV adoption are putting increasing pressure on German manufacturers and suppliers. Employment in the sector fell 6.2% last year, with nearly 50,000 jobs lost, and supplier jobs have declined by one-quarter since 2019.
Chinese EV batteries and automotive components are increasingly dominating European supply chains, while German automakers continue producing in China for local markets and exports. EY predicts imports and exports could reach parity in 2026, intensifying pressure on Europe’s car industry.
