🇺🇸 Gartner Says Over $3.5 Trillion of AI Infrastructure Spending Could Be Exposed to Impairment by the End of 2030 - Statement gartner.com/en/newsroom/pres…

🚨 For the first time in history, Chinese automakers have outsold their Japanese rivals in Europe over an entire quarter ! 🇨🇳 In September, Chinese brands accounted for 12.7% of European car sales, compared with 11.9% for Japanese automakers, with registrations nearly doubling year-over-year. BYD, Chery, and their competitors are now gaining market share at an extraordinary pace and their success is no longer driven solely by electric vehicles. 📊 In October 2024, the European Union introduced additional tariffs of up to 35.3% on Chinese-made battery-electric vehicles, on top of the standard 10% import duty, but hybrids were not covered. Chinese automakers quickly accelerated their expansion into this segment which is attractive to European consumers who remain hesitant about going fully electric. As a result, their share of European hybrid sales has surged to ~32% while hybrid technology has historically been one of the Japanese auto industry's greatest competitive advantages. 🇪🇺 China is no longer competing with Western automakers solely on price, it is now challenging them directly in their own strategic segments. With highly integrated supply chains, significant expertise in battery manufacturing and the ability to develop new models at remarkable speed, Chinese brands enjoy substantial competitive advantages. Meanwhile, European manufacturers must finance their technological transition while facing increasing pressure on volumes and margins. ⚠️ Brussels is now trying to restrict Chinese hybrid imports but tariffs cannot restore an industry's competitiveness. BYD is already developing manufacturing operations in Hungary, Chery is preparing production in Spain, and Leapmotor is leveraging Stellantis' European factories. If Europe taxes cars manufactured in China, Chinese automakers can increasingly manufacture those same vehicles directly in Europe. ➡️ Europe can keep raising trade barriers but protecting a market has never been enough to make an industry competitive. *Bloomberg link: bloomberg.com/news/articles/…