European governments, Germany and Italy in particular, are under growing pressure to revamp their electric vehicle subsidy schemes as sales of Chinese EVs soar with the help of taxpayer-funded programs.
Countries are mulling local content requirements, which would make it more difficult for buyers of Chinese EVs to access the incentives. French and British subsidy rules already limit the eligibility of Chinese cars.
“We should enshrine local content wherever public funds are involved,” said Sebastian Roloff, spokesperson for the German Social Democratic Party’s economic policy group.
For Europe as a whole, Chinese EV sales increased 65 percent in the first half of 2026 compared to the same period last year, rising to nearly 792,000 units from 479,000, according to the latest data from the European Automobile Manufacturers’ Association.
