EU Targets Chinese EV Cost Parity by 2028 Using Chinese Technology

European policymakers are seeking to close the cost gap with Chinese electric‑vehicle makers by 2028‑2029. The EU automotive sector, which supports more than 13 million jobs, faces competition from affordable Chinese EVs and has responded with tariffs on those imports. The proposed Industrial Accelerator Act, branded “Made in EU,” aims to secure access to Chinese technology and know‑how while enforcing domestic production standards.

Harald Hendrikse, European head of autos research at Citi, says the plan rests on two pillars – proper implementation of the Act and continued openness of Chinese firms. He adds, “The most important thing is the fact that the Chinese are completely open, the Chinese industry is completely open to working with Western manufacturers, which means that basically, even relatively new Chinese technology is coming very quickly to Europe.” If these conditions are met, industry insiders believe European brands could match Chinese rivals in cost by the end of the decade.