Skip to content

German automakers urge deeper China ties to secure EV supply chains

Volkswagen and Mercedes struggle as China’s EV dominance grows. Now, Germany’s auto industry demands dialogue—not confrontation—to protect its future.

This is a presentation and here we can see vehicles on the road and we can see some text written.
This is a presentation and here we can see vehicles on the road and we can see some text written.

Automakers demand closer cooperation with China - German automakers urge deeper China ties to secure EV supply chains

The VDA, representing Germany’s carmakers, has stressed the importance of China as a key market. German manufacturers depend heavily on Chinese imports, particularly for rare earths and semiconductors. Recent export controls imposed by Beijing have added pressure, disrupting supply chains and raising costs.

German automakers have criticised EU import restrictions and opposed proposals requiring minimum European content in vehicles. Müller argues that long-term solutions are needed to ensure stable supply security and competitive conditions. She believes the potential for cooperation between Germany and China remains significant, despite current tensions.

The industry’s push for closer ties follows a period of declining sales and increased competition from Chinese EV producers. Volkswagen and Mercedes, once dominant in the market, now face stronger rivalry from local brands. Müller’s call for constructive dialogue reflects concerns over losing ground in one of the world’s largest automotive markets.

The VDA’s stance highlights the deep reliance of Germany’s car industry on Chinese materials and markets. Without stable cooperation, supply chain risks and competitive pressures could worsen. The outcome of these discussions may shape the future of German automakers in the global EV race.

Read also:

Latest