popular articles

China vs. Europe: The gap is widening in the electric vehicle market

China's electric vehicle market far outstrips that of Europe, revealing a growing divergence in the adoption of electromobility and highlighting the challenges Europe faces in catching up.
BYD factory, China

Please share:

China continues to reinforce its dominance of the global electric vehicle market.
In July 2024, the market share of electric and plug-in hybrid vehicles in China exceeded 50%, in stark contrast to the 20.5% achieved in Europe in June. This momentum reflects a well-orchestrated national strategy that has enabled China to become the undisputed leader in electromobility.
Massive support from the Chinese government, combined with a well-established local battery industry, has enabled manufacturers like BYD to offer vehicles at competitive prices, making electric vehicles accessible to a large proportion of the population.
In Europe, the transition to electric is hampered by a number of obstacles, including persistently high costs and a reliance on subsidies to stimulate demand.
The end of purchase subsidies in Germany, for example, led to a sharp drop in electric vehicle sales, illustrating the vulnerability of the European market to increasingly fierce competition.

European response and future challenges

Faced with the rapid expansion of Chinese exports, the European Union reacted in July 2024 by imposing additional customs duties on electric vehicle imports from China, reaching up to 38%.
This measure is designed to protect Europe’s ailing automotive industry from a Chinese supply that enjoys a decisive cost advantage thanks to large-scale domestic battery production.
However, this protectionist response alone will not suffice.
European automakers must quickly revise their strategy, developing more affordable models tailored to the needs of the local market.
Initiatives such as the imminent launch of the Renault 5 and Citroën ë-C3 at more competitive prices testify to this need for innovation to remain relevant in the market.
The gap between China and Europe in the field of electromobility continues to widen, and the challenges for the European industry are many.
The Chinese market, having reached a level of maturity, is moving towards a phase where supply and demand naturally balance out, without the need for massive subsidies.
On the other hand, Europe still needs to overcome structural obstacles and accelerate its transition to more efficient and economically viable power generation if it is to catch up.

Register free of charge for uninterrupted access.

Publicite

Recently published in

British automotive manufacturers anticipate missing the 2024 electric vehicle sales targets set by the government and request fiscal incentives to overcome challenges and avoid penalties.
The rise of electric vehicles and driver assistance systems will redefine the automotive repair market. Despite a decline in conventional interventions, the sector's sales are set to increase slightly between now and 2030.
The rise of electric vehicles and driver assistance systems will redefine the automotive repair market. Despite a decline in conventional interventions, the sector's sales are set to increase slightly between now and 2030.
China opposes US ban on Chinese automotive technologies. The Chinese Ministry of Commerce expresses its firm opposition to the United States Department of Commerce's plan to ban connected vehicles equipped with Chinese technologies in the United States, denouncing it as a protectionist measure contrary to free market principles.
China opposes US ban on Chinese automotive technologies. The Chinese Ministry of Commerce expresses its firm opposition to the United States Department of Commerce's plan to ban connected vehicles equipped with Chinese technologies in the United States, denouncing it as a protectionist measure contrary to free market principles.
Stellantis introduces the Leapmotor T03, a Chinese electric model assembled in Poland, targeting the entry-level market in Europe with a competitive price and 265 kilometers of range.
Stellantis introduces the Leapmotor T03, a Chinese electric model assembled in Poland, targeting the entry-level market in Europe with a competitive price and 265 kilometers of range.
Qair and Trapil join forces to develop the distribution of electromolecules in France and abroad, with the aim of supporting the decarbonization of the air and sea transport sectors.
Norway stands out for its lead in automotive electrification, with over 754,000 electric vehicles registered. This historic turning point raises questions about the sustainability of this transition and the challenges ahead to maintain this momentum.
Norway stands out for its lead in automotive electrification, with over 754,000 electric vehicles registered. This historic turning point raises questions about the sustainability of this transition and the challenges ahead to maintain this momentum.
Electric mobility in France is progressing, supported by Enedis studies on recharging behavior. Despite high user satisfaction, challenges remain, notably vehicle autonomy and the optimization of charging infrastructures.
Electric mobility in France is progressing, supported by Enedis studies on recharging behavior. Despite high user satisfaction, challenges remain, notably vehicle autonomy and the optimization of charging infrastructures.
Brookfield is investing up to USD 1.1 billion in Infinium, aimed at increasing the availability of sustainable fuels for aviation and heavy industry, marking a significant step forward for alternative energies.
Brookfield is investing up to USD 1.1 billion in Infinium, aimed at increasing the availability of sustainable fuels for aviation and heavy industry, marking a significant step forward for alternative energies.
BMW has announced mass production of its first hydrogen-powered car for 2028, in collaboration with Toyota, despite the infrastructure and cost challenges associated with this niche technology.
Volvo Cars is lowering its target for 100% electric sales by 2030, due to delays in the development of charging infrastructure and regulatory changes.
Volvo Cars is lowering its target for 100% electric sales by 2030, due to delays in the development of charging infrastructure and regulatory changes.
Octopus Electroverse reaches 850,000 charging points for electric vehicles in Europe, optimizing access to an interoperable network at no additional cost to users.
Octopus Electroverse reaches 850,000 charging points for electric vehicles in Europe, optimizing access to an interoperable network at no additional cost to users.
Chinese automaker BYD reports a 24.4% increase in half-year net profit, driven by sustained domestic demand and a strategy of international expansion.
Chinese automaker BYD reports a 24.4% increase in half-year net profit, driven by sustained domestic demand and a strategy of international expansion.
The cost of recharging at ultra-fast charging stations remains unpredictable, creating a significant barrier to the progression of electric vehicles, despite the rapid expansion of infrastructure.
Oakland becomes the first school district in the USA to adopt a fleet of 100% electric buses, incorporating V2G technology, with direct implications for the local energy infrastructure.
Oakland becomes the first school district in the USA to adopt a fleet of 100% electric buses, incorporating V2G technology, with direct implications for the local energy infrastructure.
Kerosene reserves in Colombia are dwindling, prompting operational adjustments at several airports and increased surveillance of the aviation sector.
Kerosene reserves in Colombia are dwindling, prompting operational adjustments at several airports and increased surveillance of the aviation sector.
Despite a significant increase in sales in the second quarter, XPeng suffered further financial losses, reflecting tensions in the Chinese electric vehicle market.
Despite a significant increase in sales in the second quarter, XPeng suffered further financial losses, reflecting tensions in the Chinese electric vehicle market.
DRIFT Energy raises £4.65 million to develop autonomous yachts dedicated to offshore hydrogen production, with support from Octopus Ventures.
Sceye, a key player in high-altitude platform systems, achieves stratospheric daytime flight using solar energy, opening up unprecedented prospects for aerial infrastructure and environmental monitoring.
Sceye, a key player in high-altitude platform systems, achieves stratospheric daytime flight using solar energy, opening up unprecedented prospects for aerial infrastructure and environmental monitoring.
BYD, China's leading electric vehicle manufacturer, joins forces with Mega Motors to open a plant in Karachi, aiming to transform Pakistan's automotive landscape.
BYD, China's leading electric vehicle manufacturer, joins forces with Mega Motors to open a plant in Karachi, aiming to transform Pakistan's automotive landscape.
The U.S. Department of Energy is awarding $50 million to six states to support automotive suppliers' transition to electric vehicle component production.
The U.S. Department of Energy is awarding $50 million to six states to support automotive suppliers' transition to electric vehicle component production.
ENEOS Holdings and Cosmo Energy Holdings are adjusting their strategy to meet growing demand for aviation fuel in Japan, by increasing production and considering imports in the face of geopolitical tensions.
In July 2024, sales of hybrid and electric cars in China exceeded 50%, marking a milestone for the automotive market.
In July 2024, sales of hybrid and electric cars in China exceeded 50%, marking a milestone for the automotive market.
California is stepping up its efforts to integrate hydrogen into heavy-duty, marine and air transport, despite the challenges of infrastructure and high costs.
California is stepping up its efforts to integrate hydrogen into heavy-duty, marine and air transport, despite the challenges of infrastructure and high costs.
China is seeing a growing adoption of liquefied natural gas (LNG) trucks, reducing demand for road diesel by over 8%, according to a report by Wood Mackenzie.
China is seeing a growing adoption of liquefied natural gas (LNG) trucks, reducing demand for road diesel by over 8%, according to a report by Wood Mackenzie.

Advertising