Europe's Automakers Seek to Match PRC EV Prowess

story
Image copyright: Unsplash

The Facts

  • During Munich's IAA ("Internationale Automobil-Ausstellung") mobility show, European carmakers, including Volkswagen, Renault, Mercedes Benz, and BMW, announced plans to rival Chinese companies in making affordable electric vehicles (EVs).

  • As demand for combustion engines — which made the continent a world car manufacturing leader for decades — declines in Europe, Chinese firms have gained the advantage by benefiting from state subsidies to produce cheaper battery cells.

Show more

The Spin

Anti-China narrative

While Europe does have roadblocks when it comes to growing its EV market, it has nothing to do with a lack of vision or innovation from within its auto industry. Europe's historically dominant car manufacturers are behind because they haven't been given the government subsidies necessary to compete with China. However, if more Eurozone countries develop incentives like those seen in Norway since the 90s, they can take back their title of automaker kings.

Guardian

Pro-China narrative

Volkswagen's $1.1B investment in Chinese EV manufacturing is just the tip of the iceberg, as other corporate powerhouses like Deloitte also plan on taking a piece of Beijing's growing EV pie. Between attracting foreign executives and offering government subsidies to its domestic companies, Beijing can only grow its share of the global EV market. China is outperforming the West regarding both EVs and economic prowess more generally—the proof is in Europe's desire to stay friendly with Beijing rather than choosing to be antagonistic like the US.

Global Times

Articles on this story