reporter's notes | difficulties in the electrification transformation of european automakers
2024-09-14
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xinhua news agency, brussels, september 12 (reporter kang yi) recently, european automakers have been in turmoil one after another. in addition to the german volkswagen group considering closing two local factories, mercedes-benz, porsche and other european automakers have also successively adjusted or abandoned their previously vigorously promoted electric vehicle production and sales targets and investment plans.
the reason why european automakers' electrification transformation has been full of twists and turns is that, on the one hand, the economic recovery of major european economies is sluggish and the policy environment is uncertain, which has affected the strategic planning of european automakers; on the other hand, the cost of traditional automakers' transformation to electrification is too high, especially the high cost of battery production in europe, which makes it difficult for automakers to make profits in the short term and lacks the motivation to transform.
in addition, due to the slow deployment of related supporting facilities such as charging stations, consumers are worried about the insufficient battery life of electric vehicles and are not willing to buy them. at the same time, car rental companies are also cautious about large-scale purchases of electric vehicles due to the low residual value of electric vehicles.
on february 28, a visitor experienced a micro electric car at the 2024 geneva international motor show in geneva, switzerland. photo by xinhua news agency reporter meng dingbo
as a result, european automakers are trapped in a vicious cycle. the more obstacles automakers face on their road to electrification, the more hesitant consumers become to buy electric vehicles; and the lack of consumer demand for electric vehicles makes it even more difficult for automakers to have the confidence and determination to vigorously develop electric vehicles.
according to data from the european automobile manufacturers association, the development of electric vehicles in europe has fallen short of expectations, with the market share of electric vehicles falling from 14.16% in 2023 to 12% in 2024, and less than 30% of european consumers choosing to buy electric vehicles. a report by the british juntech business consulting company shows that about 139,000 new electric vehicles were registered in europe in july, down about 6% from the same period last year.
the eu's insistence on imposing tariffs on electric vehicles imported from china has objectively made it more difficult for european automakers to transform to electric vehicles. once the tariffs are imposed, european automakers that produce electric vehicles in china, including germany's bmw and volkswagen, will not be spared, making it difficult for european consumers to buy high-quality electric vehicles at affordable prices, which will not only affect the development of the european electric vehicle market, but also make the eu's ambitious green transformation even more difficult.
exterior view of volkswagen (anhui) co., ltd. (drone photo, taken on june 7). photo by xinhua news agency reporter guo chen
wayne griffiths, ceo of the cupra brand under volkswagen's subsidiary seat auto, told the media that if the european commission imposes tariffs on electric vehicles imported from china, the brand will be "annihilated." "this puts the company's entire financial prospects at risk." he said that the eu claimed that the original intention of the investigation was to protect the european auto industry, "but it has the opposite effect on us."
luigi gambardella, president of the china-europe digital association, told reporters that the imposition of tariffs poses a major challenge to european consumers and the sustainable development and innovation of the automotive industry. the eu's move may ultimately backfire, leading to higher costs for electric vehicles and making it difficult for european consumers to pay for them.
in the final ruling of the anti-subsidy investigation on chinese electric vehicles released by the european commission, eu officials admitted that they had not found that chinese electric vehicles caused substantial damage to eu automakers, but argued that the eu saw the so-called "risks."
the eu's practice of forcibly implementing trade protectionist measures based solely on "threat of damage" violates wto rules and is unacceptable to the industry. many european companies and business associations have repeatedly warned that the european commission's unfair use of trade tools to hinder free trade in electric vehicles has increased the risk of trade conflicts and will not help enhance the competitiveness of the european automotive industry and its green transformation. this move is not only unable to solve the current difficulties faced by european automakers in electrification transformation, but also sends a wrong signal to global cooperation and green development.
on june 6, in brussels, belgium, an electric car was charging at a charging station near the european commission. photo by xinhua news agency reporter zhao dingzhe
as the eu is getting closer to announcing the final ruling of its anti-subsidy investigation, more industry insiders say that relying on imposing tariffs will not solve the plight of the european auto industry. the eu and its member states should listen to the voices of the chinese and european auto industries and look at the development of china's electric vehicles and market opportunities in an objective and rational manner.
in fact, healthy competition and cooperation can promote industrial progress better than isolation. gambardella said that through strategic investment in chinese companies or establishment of joint ventures, european automakers can obtain advanced technology, supply chains and a rapidly growing consumer group. this will not only strengthen the european automotive industry, but also promote cooperation and innovation on a global scale. similarly, chinese electric vehicle companies should be encouraged to invest and produce in europe, reducing costs, creating jobs and contributing to the local economy by bringing production closer to the market. this will help the joint growth of the chinese and european automotive industries.
source: xinhua news agency client
