China’s Progress in Electric Vehicles is Disrupting Global Balance

The rise of China-based electric vehicle (EV) manufacturers in global markets has begun to pressure domestic automotive industries in many countries. The aggressive sales strategies of brands such as BYD are causing significant disruptions in certain markets.

In 2025 alone, BYD’s sale of more than 22,000 electric vehicles to Brazil pushed the market share of Chinese brands in the country above 80%. This creates intense competitive pressure for local manufacturers. Representatives of the local industry are warning authorities about the risks of job losses and the withdrawal of domestic investments.

A similar picture is emerging in Europe. China's low-cost, high-volume production has prompted the European automotive sector to seek protective measures. Within this context, Brussels is planning customs tariffs on Chinese-made electric vehicles. However, Beijing is trying to persuade Brussels to adopt a model similar to the “minimum export price” applied by Turkey, as an alternative to tariffs.

If this proposal is accepted, it could mark a significant policy shift not only for the European Union but for the global automotive industry as well. China’s control over rare earth elements and other strategic materials is being used as a bargaining chip in these negotiations.

In light of these developments, the following critical questions arise:

• How will Brazil and Europe protect their domestic automotive industries against this global competition?

• How will China’s use of rare earth elements as a negotiation tool impact the negotiation processes?

• In the face of China’s low-cost production, how will other countries reshape their competitive advantages?

The electric vehicle competition has evolved beyond being a purely economic issue, now encompassing dimensions of technology, employment, and national sovereignty.

One thing is becoming increasingly clear: Automotive is no longer just about cars.