Chinese automakers like XPeng challenge Europe as VW cuts 50,000 jobs

As Volkswagen plans to cut 50,000 jobs while clinging to combustion engine technology, Chinese automakers are aggressively entering the German auto market. XPeng's CEO has declared ambition to become the number one automaker in Europe. EU Industry Commissioner Stéphane Séjourné warned that the European auto industry faces 'mortal danger' from electrification, risking its global market position. None of the top 20 best-selling electric vehicles globally in 2025 came from European manufacturers. Winners include Tesla—whose Model Y has been the world's best-selling model annually since 2023—and Chinese producers of New Energy Vehicles (NEVs), a category encompassing both pure electric and hybrid vehicles. Many of these new Chinese automakers did not originally manufacture cars, drawing parallels to how iPhones are built.