Industries in Europe are putting their money into the manufacturing of electric cars in China, but aren’t typically doing so in Europe, which could risk the potential of the industry in that region according to the Transport and Environment Federation.
This report was put out by the Ecology and Development Foundation and is a part of the Transport and Environment Federation.
In this report put out by European electric car makers through the Transport and Environment Federation, the in previous year over $25.29 billion into making electric cars in China.
Comparing that to Europe, only $3.73 billion has been invested in the market.
Electric car makers in China do make one third more vehicles than manufacturers but this doesn’t make up the difference in investments where companies are investing seven times more in China.
Some believe the difference comes about because the policies in China make the market a better viable investment for the long run.
Specifically China’s “clean policy” ensures that electric car makers who manufacture within China must buy credits for electric car production equal 10% of the total passenger market in 2019, 12% by 2020. This will ensure that at least 4% of registrations will emit no vehicle emissions.
Europe did have their European Commission propose an overall reduction of CO2 emission for newly made vehicles however it was a “little ambitious and forgot the establishment of clear and mandatory targets in terms of the sale of zero emission vehicles.”
Carlos Calvo, from the Transport and Environment Federation, states that China has made a “clear commitment”‘ to electric cars and soon will have “a considerable competitive advantage over the European and Spanish market.”
This is due to, according to Calvo, “the understood that production follows demand, and that demand is created with intelligent and ambitious industrial policies. Europe still does not get rid of the dirty heritage of diesel.”
This leaves two choices for ministers of the EU. According to Calvo ministers can set a number of cars that need to be sold and keep the jobs making electric cars in Europe, or let car makers to continue to sell non-electric cars in Europe and continue to put money into China who will eventually export those cars back to Europe.
As an example the report points out the Volkswagen Group, which leads investment into China with $11.65 billion into Anhui Jianghuai, a national electric car maker.
Meanwhile Nissan has promised $9.32 billion along with Renault and Dongfeng into the Chinese market as well.
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