In Europe we continue to discuss the car situation. The local producers are all, more or less, in serious difficulty and the Chinese offensive is starting to weigh on sales. In recent years the Asian market has grown a lot. The cars produced by the Land of the Dragon have become technologically more and more refined and have also made a notable step forward in terms of design. The mass production of these cars has forced the EU to review some regulations, but apparently some flaws still exist. In particular, there would be a regulatory gap that would allow small-brand Chinese vehicles to enter through individual approval (Individual Vehicle Approval – VAT). This procedure, designed for one-offs and prototypes, is not comparable to the rigorous one used by the EU on safety, emissions and CO2.
This situation emerged in an investigation published in La Stampa’s motor supplement. Apparently, while Chinese industry giants such as BYD, Geely, Chery and MG operate with full approvals, some importers, often operating in Germany, Poland or the Czech Republic, exploit this loophole to insert models from smaller brands with endothermic or hybrid engines, effectively exceeding standard checks.
What happens
Even cars with 1,500 cc petrol engines are often registered as “one-offs” and then resold in other EU countries, including Italy, without any assistance network, without guarantees and without spare parts. The phenomenon of course creates unfair competition for European producers, who instead have to invest large sums to comply with stringent European standards. Furthermore, this situation also risks penalizing those Chinese brands, which have always respected the rules.
The sale of these cars also becomes a detriment for consumers as they find themselves purchasing cars without after-sales support and potentially with standards that do not comply with European ones. Furthermore, EU duties on Chinese electric vehicles (up to 35.3% from 2024) do not affect endothermic or hybrid models. This favors a shift towards these diets. While the European Commission reviews the deadline for internal combustion engines, previously set for 2035, the individual VAT hole remains and becomes a big problem for manufacturers.
The situation
As we also read in the Press, the sector for this reason is asking for intervention with a certain urgency stricter controls so as to close this loophole and protect both consumers and the European car industry which is already in a less than brilliant condition. For now, investigations and sanctions have been promised, but the timing of all this remains uncertain.
Meanwhile in Europe, since the latest findings in November, the market has appeared to be growing. However, the problems remain. Electric cars aren’t taking off yet and now a very important transitional phase will begin for manufacturers. With the 2035 deadline moved by the EU to say goodbye to internal combustion engines, it will be necessary to decide whether to continue with BEVs so as to perhaps have a technological advantage in the future or go back to diesel and petrol engines to make immediate profits. The only certainty for now remains uncertainty.
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