As Europe battles an 'onslaught' of China EVs, one CEO has a plan

Renault's chief executive on Tuesday said that European policymakers should take inspiration from China as they look to boost the region's automotive industry in an increasingly tough landscape.

In a report signed by Renault Group CEO Luca de Meo, the auto industry was described as a "pillar of the European economy" that was "facing an onslaught of electric vehicles from China."

It comes after numerous auto firms — both within and outside of Europe — said that competition from China was among the biggest challenges to their business outlook.

The French automaker argued that Europe's auto sector was suffering from an "imbalance in competition." It cited the tax credits granted for green manufacturing projects in the U.S. Inflation Reduction Act, and the hefty subsidies reportedly being given to domestic manufacturers by the Chinese government.

Europe also faces significantly higher energy costs than both markets, the report said, and 40% higher wage costs than China.

The European Commission, meanwhile, is set to introduce up to 10 new regulations each year between now and 2030, placing businesses "at a huge disadvantage" as they struggle to meet new deadlines, it said.

As it looks to address these issues, Renault suggested that Europe take note of how China has supported its own auto industry and proposed a range of policies.

European Union politicians need to develop a new industrial strategy for the region and "deploy a regulatory framework with a stable base but open-ended content, on the same lines as the Chinese model," the report said. It called for the creation of a body to assess the impact of auto industry regulations.

It also suggested the establishment of "green economic zones" which receive subsidies and tax breaks,