Volkswagen Group Chief Executive Officer Oliver Blume has warned that European mass-market car manufacturers are facing increasing pressure from Chinese competitors and changing consumer demand.

His comments came during an event associated with the Paris motor show, where automakers are presenting new vehicles and competing for customers.

Blume said manufacturers must remain competitive while producing affordable electric vehicles and controlling production costs.

He also called for more flexible regulations and incentives to support vehicle manufacturing within Europe.

Volkswagen, Stellantis, and Renault together account for more than 60% of European car production, according to Reuters.

Their position in the market makes the challenges facing these companies particularly significant for the region’s automotive industry.

Chinese automakers are increasingly targeting European consumers as competition intensifies in the electric vehicle market.

Their presence at the Paris event has added to concerns among European manufacturers about lower-priced imports and pressure on profit margins.

Volkswagen is also pursuing a major restructuring programme that includes plans for substantial job cuts and possible factory closures.

The company’s leadership argues that European manufacturers need to strengthen local production and improve competitiveness to protect the region’s industrial base.

Source: Reuters.