Chinese EV surge in Europe puts Milan's auto finance under scrutiny

Chinese electric car sales have surged to a record high in Europe, driven by strong demand and low tariffs in the UK and a surge in buyers in Italy, according to the Guardian. Imports from China now account for 14% of the European market, amid claims that Chinese carmakers are dumping vehicles in the EU and UK.

For Lombardy, the story lands close to home. The region is Italy's advanced manufacturing heartland, home to a dense network of auto parts suppliers that feed both domestic brands and European assembly lines. A sustained shift toward Chinese EVs threatens their order books, with implications for the Milan stock exchange, where several of these companies are listed.

The Guardian reported that the surge has put existing tariffs under scrutiny, as European manufacturers and policymakers debate whether current duties are sufficient to protect local industry. The outcome of that debate will be watched closely in Milan, where investors are already pricing in the risk of a structural decline in traditional auto supply chains.