According to a report by the Transport & Environment Center, the European Union did not offer further incentives to automakers to boost the production of electric vehicles because it feared losing market share to Chinese cars.
Official numbers show that the growth of electric car sales in the European Union has slowed in 2022, which constituted only 11% of sales in the first half of this year, while it should have reached 13%.
While BYD and Great Wall began their efforts to establish themselves in Europe, 5% of the electric vehicles sold on the old continent this year were built in China, and by 2025, it is anticipated that they will account for 18% of the market.
The study found that the decision to ban the sale of internal combustion engines in 2035 should be adhered to, along with opposing any artificial fuel exemptions, removing the emissions measuring system as of 2025, and using European Union funds and national policies to accelerate the increase in electric car production. Based on this, the industry won’t flourish if the European Union does not act and supports and aids auto manufacturers.
According to the study, if European Union automakers don’t increase supply, foreign automakers may be able to offer more affordable models and win a sizable portion of the total European market. If the European Union can’t effectively organise its market, it runs the risk of losing its economic sovereignty in the auto sector.
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Earlier this month, the European Automobile Manufacturers Association (ACEA) requested help from the European Union to safeguard the automotive sector by allowing for more flexibility in European supply chains and accelerating the implementation of the Criticalrao raw material rule.
China poses a danger to Europe’s electric vehicle market.
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