Will Europe let China crush its car industry?

Published February 10, 2026 6:00am ET



Europe’s automotive industry is under growing pressure from China. European automakers are steadily losing market share to Chinese vehicle manufacturers and, in some cases, reporting significant financial losses. Europe’s political leadership should have anticipated this challenge and adopted policies to strengthen and protect the continent’s domestic auto sector. 

For decades, European automakers dominated global markets through engineering excellence, powerful brands, and mastery of the internal combustion engine. That era is now under grave threat.

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