European carmakers are facing fierce competition from Chinese automakers in developing and producing lower-cost electric vehicles (EVs), according to executives at the Munich Auto Show. Chinese EV makers, such as BYD, Nio, and Xpeng, are targeting Europe’s EV market, which saw a 55% increase in sales in the first seven months of 2023. European carmakers, including Renault, are striving to close the cost gap with their Chinese counterparts and achieve price parity. Chinese battery makers are also expanding in Europe, contributing to lower EV costs. Concerns are rising about Chinese dominance in the European EV market, prompting calls for increased investment in electrification from German industry leaders.