Stellantis pushes Europe manufacturing incentives amid rising Chinese auto competition

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Stellantis pushes EU manufacturing incentives

Highlights

Stellantis urges EU policymakers to implement 'Made in Europe' incentives and local content thresholds before the Paris Motor Show to counter declining demand and Chinese competition.
Chinese auto brands' share of European car sales jumps from near zero in 2020 to 12% by August 2025, intensifying market pressure on regional manufacturers.
European auto and parts stocks surged Monday as China agreed to halve hybrid car exports to the EU, with Stellantis up 2.7% and Renault up around 3%.

EU policy push before Paris Motor Show

As reported by CNBC, Filosa says European regulators need to create a stronger level playing field for all carmakers by backing rules tied to "Made in Europe" production. He says that means regulation that incentivizes, rewards and protects companies able to demonstrate they design and engineer cars in the region.

The proposed "Made in Europe" approach refers to legislation drafted by the European Commission that would require carmakers to meet minimum local content thresholds to sell in the regional market. Filosa makes the comments ahead of the Paris Motor Show, while Stellantis continues a $70 billion turnaround strategy as it contends with declining demand.

Stellantis, whose brands include Jeep and Ram, is also under market pressure, with its shares down almost 60% since the start of the year. Filosa has led the automaker since 2025 and frames the policy debate around preserving fair competition rather than excluding foreign rivals.

Chinese brands gain share in Europe

Chinese car brands are strengthening their position globally and in Europe, adding urgency to calls from regional manufacturers for policy support. According to GlobalData, Chinese brands' share of global auto sales rises nearly 70% from 2020 to 2025, while Dataforce data shows their share of European car sales climbs from close to zero in 2020 to 12% in August this year.

Filosa says Chinese automakers can offer consumers strong technology and competitive pricing across many segments. That competitive appeal is becoming a central challenge for European manufacturers trying to protect production, supply chains and investment in the region.

Markets also react to trade developments between Brussels and Beijing. European Trade Commissioner Maros Sefcovic says China agrees to halve its exports of hybrid cars to the bloc, and shares in European auto and parts groups move higher on Monday morning, with Stellantis up 2.7%, Renault up around 3%, and suppliers Valeo and Forvia also gaining in early trading.

China's Ministry of Commerce says on Monday that Beijing and the European Union maintain dialogue on trade and investment and have reached several consensuses and achievements supporting a stable and balanced trade relationship. A principle of the agreement is non-discrimination, with China saying no measures will specifically target Chinese companies and that its quota will not be lower than that of any other import source for the EU.

China’s September passenger-car data showed domestic demand still weakening, with sales falling for a 12th straight month. Our earlier article noted that this softness at home is pushing Chinese automakers to rely more on overseas markets, where exports are still surging year over year. That export momentum is increasingly shaping competitive dynamics abroad, as Chinese brands seek growth outside China.

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