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The European Automotive Industry’s Use of Non-Market Strategies to Strengthen Its Competitive Position vis-à-vis Chinese Entrants

In: BUSINESS AND POLICY CHALLENGES OF GLOBAL UNCERTAINTY European Perspectives

Author

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  • Louise Albrechtsen
  • Katinka L. H. Borregaard

Abstract

The European automotive industry is a strong driving force of economic growth, job creation and innovation in the region. However, the green transition toward battery electric vehicles (BEVs) holds the potential to erode the European automakers’ lead position as highly competitive Chinese BEV producers are entering the EU market. This chapter explores how European original equipment manufacturers (OEMs) can use non-market strategies to defend and strengthen their position in the EU automobile market vis-à-vis Chinese entrants. By adopting a classical case study approach focused on the European automotive industry, information was collected through interviews with significant industry and political actors, along with secondary data from diverse sources. By combining different theoretical approaches, we derive a framework to understand how European OEMs can use non-market instruments to protect their market position. The framework is used to investigate five strategic non-market instruments: (i) import barriers, (ii) subsidies, (iii) public procurement, (iv) public–private partnerships and (v) regulations. We highlight the importance of the European automakers to proactively shape and frame the non-market environment, and we emphasize the importance of strategic alliances and common ground among European car manufacturers to keep the Chinese competitors at bay.

Suggested Citation

  • Louise Albrechtsen & Katinka L. H. Borregaard, 2025. "The European Automotive Industry’s Use of Non-Market Strategies to Strengthen Its Competitive Position vis-à-vis Chinese Entrants," World Scientific Book Chapters, in: Torben J Andersen & Edward Ashbee & Bent Petersen (ed.), BUSINESS AND POLICY CHALLENGES OF GLOBAL UNCERTAINTY European Perspectives, chapter 15, pages 371-396, World Scientific Publishing Co. Pte. Ltd..
  • Handle: RePEc:wsi:wschap:9781800616226_0015
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    Keywords

    Business Ecosystems; China; Corporate Diplomacy; Deglobalization; Data Regulation; Economic Sanctions; EU Chips Act; India; Money Laundering; Microchips; Multinational Enterprise; Public Responses; The European Automotive Industry; The Global Chip Industry; The Global Shipping Industry; Transnational Management; Uncertainty;
    All these keywords.

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F5 - International Economics - - International Relations, National Security, and International Political Economy

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