Expert: Supply Chain Crises Since 2020 Revealed China's Superiority in Auto Industry

No one saw it coming. Since 2020, the global automotive industry has undergone a seismic shift, with China emerging as the dominant force in supply chains and manufacturing components, while Europe struggles to keep pace in the electric vehicle race. This is according to Eng. Raafat Masrouga, sales and marketing expert, speaking on the 'Arabity' program on Radio Egypt.

Europe Caught Off Guard as China Pulls the Rug

The competition was never fair. While European factories stumbled over semiconductor shortages and shipping disruptions, Chinese automakers like BYD and others ramped up production and expanded their tech portfolios. Masrouga says Europe was oblivious as China gradually pulled the rug from under European manufacturers, given China's control over a large share of manufacturing components and supply chains.

The numbers tell the story. China now controls over 70% of global lithium-ion battery production and holds massive shares in electronics and EV manufacturing. This dominance wasn't accidental; it was built on proactive investments in technology, mining. Manufacturing, while Europe bet on its traditional strength in internal combustion engines.

2025: The Year of Reckoning in the EV Race

By 2025, the picture became clearer. Chinese EVs like the BYD Seagull and Tesla Model Y are asserting themselves in European markets with competitive prices and advanced tech. European manufacturers find themselves in a bind: catch up or lose valuable market share. Masrouga explains that China's production and technological strength in EVs has made competition for European manufacturers tougher than ever.

The shift isn't limited to EVs. The entire supply chain is now under Chinese control, from battery cells to semiconductors and electric motors. This means any European factory wanting to produce an EV must either deal with Chinese suppliers or compete against them. A tough equation, but a reality imposed by successive crises that started with COVID and haven't ended.

The question now: Can Europe reclaim its position in the auto industry? The answer depends on its ability to build independent supply chains and develop competitive battery technologies. Until then, China remains ahead, and European manufacturers are in a frantic race to catch up.