Europe's electric vehicle (EV) sector risks falling behind without a robust EU industrial strategy, auto group ACEA said on Thursday, citing new report findings, amid China's dominance of the supply chain and US incentives for its carmakers.
A new report by France's Ecole Polytechnique university shows an “immense scale of challenges” for the EU in developing an EV supply chain, the European Automobile Manufacturers' Association (ACEA) said, highlighting risks to the competitiveness of Europe's EV production as other global regions aim high with their industrial strategies.
“Unlike China and the US, the EU lacks a robust industrial strategy to shore up electric vehicle manufacturing,” Sigrid de Vries, ACEA's director-general, said in a statement.
According to the report, China's holistic policy, which encompasses every step of an EV's life cycle from mining to recycling, has greatly increased its competitiveness.
In the US, on the other hand, the boost to growth comes from ambitious sales targets both in individual states and at the federal level, as well as funding under the Inflation Reduction Act (IRA), the report showed.
Despite encouraging signals from the EU in recognising the challenges, De Vries said, too often the bloc “puts the regulatory cart before the horse”, damaging its critical industries.
To address climate change and give momentum to Europe's EV industry, the EU must also approach its regulatory framework holistically, she added.
“A patchwork of regulations ... divert vital funds and undermine competitiveness,” she said.
EU risks losing ground on EVs without strong industry strategy
Image: Sean Gallup/Getty Images
Europe's electric vehicle (EV) sector risks falling behind without a robust EU industrial strategy, auto group ACEA said on Thursday, citing new report findings, amid China's dominance of the supply chain and US incentives for its carmakers.
A new report by France's Ecole Polytechnique university shows an “immense scale of challenges” for the EU in developing an EV supply chain, the European Automobile Manufacturers' Association (ACEA) said, highlighting risks to the competitiveness of Europe's EV production as other global regions aim high with their industrial strategies.
“Unlike China and the US, the EU lacks a robust industrial strategy to shore up electric vehicle manufacturing,” Sigrid de Vries, ACEA's director-general, said in a statement.
According to the report, China's holistic policy, which encompasses every step of an EV's life cycle from mining to recycling, has greatly increased its competitiveness.
In the US, on the other hand, the boost to growth comes from ambitious sales targets both in individual states and at the federal level, as well as funding under the Inflation Reduction Act (IRA), the report showed.
Despite encouraging signals from the EU in recognising the challenges, De Vries said, too often the bloc “puts the regulatory cart before the horse”, damaging its critical industries.
To address climate change and give momentum to Europe's EV industry, the EU must also approach its regulatory framework holistically, she added.
“A patchwork of regulations ... divert vital funds and undermine competitiveness,” she said.
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