In an effort to keep up with the competition in the electronic vehicle market, the European Union is trying to keep up with automotive trends and feels the need to get incentives to increase production of electric vehicles.
The European Federation for Transport and the Environment (T&E) says that EV sales in Europe have slowed with production accounting for 11% of sales in the first half of 2022. Even though amid current industry trends, it should be able to reach 13%.
Meanwhile, EV manufacturers from China are already looking to set foot in the EU after getting high safety ratings for their EVs.
T&E expects EVs made in China to account for 5% of EV sales in the EU in the first half of this year and have a market share of around 18% by 2025.
T&E suggested that the EU should further stimulate EV production by removing any exemptions and using special incentives to accelerate the increase in EV production.
“The failure of EU automakers to increase supply could result in foreign automakers offering models that are affordable and target a large share of the consumer market in Europe,” T&E said in its report.
According to them, if the EU is not able to regulate its market efficiently, it risks losing economic sovereignty in the automotive industry.
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