The European Commission will launch an anti-subsidy investigation against Chinese automakers, which may result in higher import duties on electric vehicles.
It is not like European companies are not investing into EVs, but that EVs are different. The big advantage is battery technology, but most batteries are bought from third parties. Only Tesla and BYD have large battery production of their own. So everybody else buys them from other companies. So it is hard to be better on that technological front. The rest is a generally nice interior and software. Interior is something Europeans can do, but it has relativly little value add. What is more important is software and that is difficult for manufacturing based companies like traditional car companies.
This is not to say that European companies can not win this or lack innovation. They make good EVs, but so do the Chinese and that means a war on price. Europe is in a disadvantage on that. However there are solutions being planned like large battery plants by European manufacturers and better software development.
EVs are more the just batteries and both Volkswagen and BMW have set up production lines for EVs they developed themself. That is certainly investment. However they are using batteries from other companies. They are catching up with tesla and BYD by also setting up battery factories now. It is a bit late, but maybe not too late.
It is not like European companies are not investing into EVs, but that EVs are different. The big advantage is battery technology, but most batteries are bought from third parties. Only Tesla and BYD have large battery production of their own. So everybody else buys them from other companies. So it is hard to be better on that technological front. The rest is a generally nice interior and software. Interior is something Europeans can do, but it has relativly little value add. What is more important is software and that is difficult for manufacturing based companies like traditional car companies.
This is not to say that European companies can not win this or lack innovation. They make good EVs, but so do the Chinese and that means a war on price. Europe is in a disadvantage on that. However there are solutions being planned like large battery plants by European manufacturers and better software development.
These two statements seem at odds…
Also volkswagen are building factories and bmw are doing partnerships or something. But yeah, they should’ve been doing that 10 years ago…
EVs are more the just batteries and both Volkswagen and BMW have set up production lines for EVs they developed themself. That is certainly investment. However they are using batteries from other companies. They are catching up with tesla and BYD by also setting up battery factories now. It is a bit late, but maybe not too late.
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