Chinese competition is increasingly worrying European automakers. Milan Nedeljković, the new head of BMW, points especially to the pricing practices of some players from China. According to him, several cars are marketed in Europe at prices that are economically hard to justify. Nevertheless, the German executive does not call for new tariff barriers.
BMW chief questions Chinese pricing
Asked by the German daily Frankfurter Allgemeine Zeitung about a possible dumping by Chinese manufacturers, Milan Nedeljković, BMW’s CEO, did not name any particular brand. His reply, however, clearly reveals his concerns.
The executive argues that some Chinese cars are offered in Europe at prices that “make no business sense.” He says such a situation could fuel protectionist movements and calls for greater protection of national markets.
BMW, for its part, defends free trade. And it even presents itself as favorable to international competition. The German automaker believes, however, that competition based on prices he deems difficult to justify could become problematic.
This stance is far from innocuous for BMW. The group runs a global industrial footprint and even produces models in China for Europe. Including the electric Mini Cooper and Aceman.
BMW does not seek new tariffs
Chinese brands are taking an increasingly large share of the European market. BYD, SAIC or Geely are expanding their presence with vehicles often cheaper than those of traditional European manufacturers… while offering technologies that are increasingly advanced.
The European Union has already reacted. Following an inquiry into subsidies granted to electric vehicles manufactured in China, countervailing duties ranging from 17% to 35.3% have been imposed depending on the manufacturer.
Nedeljković, however, does not want to see a new tariff escalation. The BMW boss favors political negotiations between Europe and China to reach trade conditions that he considers fair.
According to him, voluntary agreements would be preferable to new tariffs. An escalation could indeed trigger a response from Beijing, notably on battery cells, which the European automotive industry remains dependent on.
The Roundel company is also under pressure in China
The situation is all the more delicate because BMW faces Chinese automakers on two fronts. In Europe, they directly compete with the historic brands on their home turf. But BMW is also losing ground in China.
The group’s sales, including Mini, reached a record 847,900 vehicles in China in 2021. They slipped to 626,000 units in 2025.
The Chinese market has quickly shifted toward electrified vehicles and new onboard technologies, in fields where local manufacturers have become particularly competitive. BMW therefore faces these new rivals both in China and in Europe.
The debate extends well beyond the Bavarian automaker. Volkswagen, Renault and Stellantis have notably backed the “Made in Europe” project, which proposes that 70% of a car’s components originate from the region.
Such a measure could, however, have consequences on pricing. According to the Bruegel institute, these new rules could drive up the price of an electric car by more than €2,000. The costs of European-made battery cells would be higher… with the resulting premium likely passed on to customers.
Milan Nedeljković therefore advocates for another path. Maintaining free trade while negotiating rules aimed at ensuring competition that he deems balanced. The BMW chief also believes that Brussels and Berlin must improve the conditions that allow European industry to stay competitive, rather than pursuing isolationism.
