Global automotive leaders voiced strong concerns over rising trade barriers at Auto Shanghai this week, with Volkswagen Brand China CEO Stefan Mecha emphasizing that tariffs are "not the answer to free trade" amid escalating economic tensions. The remarks come as automakers navigate shifting policies and market dynamics across Asia and beyond.
In an exclusive interview with KhabarAsia.com, Mecha highlighted the interconnectedness of the automotive industry, stating: "Open markets drive innovation and benefit consumers worldwide. Protectionist measures risk harming long-term partnerships and supply chains." His comments reflect broader industry unease following recent U.S. tariff increases targeting Chinese electric vehicles and related sectors.
Experts suggest the debate has significant implications for Asia's economic landscape. As the Chinese mainland continues to lead in EV production and green technology development, business leaders warn that restrictive trade policies could slow progress toward sustainable mobility solutions. Volkswagen, which operates 40 production sites across China through joint ventures, remains committed to localized R&D and manufacturing collaborations.
Auto Shanghai attendees from 20 countries and regions echoed calls for balanced trade frameworks, with several European and Asian manufacturers announcing new cross-border technology partnerships during the event. Market analysts note that China's auto sector growth—up 8.3% year-on-year—remains a key driver of regional economic stability.
