Europe's lag in the electric vehicle competition: It's time to shake off complacency!
Europe is falling behind in the electric vehicle (EV) race, according to renowned academic Tommaso Pardi from the French National Centre for Scientific Research. Foreign electric car manufacturers have an advantage due to earlier investments, vertical integration in the battery value chain, easier access to raw materials, bigger economies of scale, and not having the burden of phasing out 17 million combustion engine cars in ten years.
To catch up, collaboration across the automotive ecosystem and with policy makers is essential. This is emphasized by industry leaders such as Luca de Meo, the President of an unnamed automotive company. De Meo stresses that all conditions, including access to charging points, affordable green energy, purchase incentives, tax schemes, and more, should be firmly in place to meet the rapidly approaching combustion engine phase-out date in 2035.
The industry's commitment to electrification is crystal clear. The ACEA manifesto calls for a holistic EU industrial strategy across all steps of the value chain, including R&D, mining, refining, components, manufacturing, charging networks, energy, purchase incentives, and recycling. Next week, a discussion on collaboration across the whole ecosystem will take place during the #FutureDriven Reception in Brussels.
Besides Luca de Meo, other industry leaders attending the event include Alexander Vlaskamp, Peter Wennink, and Leonhard Birnbaum. The name of the CEO attending from the unnamed company is not provided.
Ursula von der Leyen, the President of the European Commission, has acknowledged the need for a robust interim review of the CO2 regulation. Defining how to measure success and determine the right trajectory for 2035 is necessary. A meaningful and thorough review of the regulation is crucial to ensure Europe's competitiveness in the global EV market.
Tommaso Pardi compares the electric car market to a rocket needing a push to get to orbit. He advocates for a comprehensive and coordinated automotive industrial policy, with a real strategy connecting the pieces of the Green Deal puzzle, to give the market the push it needs. Going back to square one is not recommended by the industry as it does not make sense and is bad for the environment, according to Mr. de Meo.
In conclusion, Europe needs to act quickly to remain competitive in the EV market. Collaboration across the industry and with policy makers, a robust interim review of the CO2 regulation, and appropriate framework conditions are all crucial steps towards creating true European champions and reducing reliance on foreign competitors. The #FutureDriven Reception in Brussels next week promises to be a significant event in this endeavour.
