"Western Automakers Battle Chinese EV Dominance with Cost-Cutting Measures"
Western automakers, including Renault, are concerned about the increasing presence of cheap Chinese electric cars in Europe. In response, Renault aims to reduce production costs for its electric models by 40% to fend off price competition. The company expects to see significantly lower production costs from the second half of this year. Chinese car makers, such as BYD and SAIC, have gained market share in Europe's EV market due to lower labor costs and local battery suppliers. Tesla's price cuts have also intensified competition. Peugeot-to-Fiat carmaker Stellantis CEO warns of "extremely brutal" competition with Chinese manufacturers and emphasizes the need to use cost competitiveness to maintain profitability. Western car makers are urged to source parts from lower-cost countries and form partnerships with battery suppliers. Additionally, they are striving to regain market share in China. Mercedes-Benz states it will not engage in a price war to gain market share in China and emphasizes the importance of adapting technological offerings to local taste.