That shows very little understanding of what Euro manufacturers think and indeed the EU public (as always, I exclude the UK for obvious reasons). German manufacturers won't shift production elsewhere simply because that is not what they want. They will build plants elsewhere, but those will only build cars for other markets. None will be imported back to any EU country. And so will do the others. The mantra in Europe is very different from Australia and the US. They keep manufacturing at home simply because they are used to high quality products, not cheap junk. Of all asian manufacturers, Japan and South Korea have managed to infiltrate the EU, and that is only because they managed to lift their quality and standards to EU level. This trend will continue, and as always, the EU will be at the forefront of modern transport be it with electric or other solutions. If this is a model that will not be followed, yes, their domestic manufacturing will become irrelevant for the rest of the world. Given however that the rest of the world doesn't seem to have better ideas, I would say they will continue to lead. Politicians in Brussels legislate to what their respective electorates expect, contrary to what the UK and other ignorants think.
Even then, they will continue to manufacture in specific overseas markets for those markets whilst trying to slowly creep in the Euro standards' cars.
One possible exception is China, who appears indeed motivated (for good reason) to do something about pollution. They may come up with some clever solution, hopefully to give Europeans a good run for their money.