Western automakers are accelerating the relocation of electric vehicle production to Europe, driven by the bloc's tariffs on Chinese imports.
A new study indicates that the share of "Made in China" EVs sold in the European market has fallen significantly since the duties were introduced, prompting manufacturers to reshore capacity to avoid trade barriers.
The shift marks a structural change in the automotive supply chain, as companies prioritize market access over the lower production costs previously available in China.
The tariffs have effectively neutralized the price advantage of Chinese-built EVs, making European-based manufacturing more competitive for brands targeting EU consumers.
This development contrasts with broader trends in German industry, where metal and electrical manufacturers have been reducing capital expenditure and moving jobs overseas.
However, the automotive sector is responding to specific trade policy pressures by reinforcing its domestic footprint.