After years of groundwork for the development of electric mobility, Europe is currently experiencing a slower adoption phase of electric vehicles (EVs).
In fact, in May 2024, EV registrations on the continent decreased by 12 percent, totaling 114,308 units, reducing their market share to 12.5 percent, according to European Automobile Manufacturers’ Association (ACEA) data.
Belgium, now in third place in volume of zero-emission cars, and France were the only significant markets to show growth, with increases of 44.8 percent and 5.4 percent, respectively.
Indeed, the future landscape of sustainable mobility might be at stake following the wave of centre and far-right victories in the European Union (EU) elections held on June 9, with such movements inclined to delay the exclusive adoption of electric cars and e-fuels.
In this context, Gerardo Pérez Gimenez, president of the Alliance of European Car Dealers and Repairers (AECDR), exclusively shares his perspective with Mobility Portal Europe, clarifying what lies ahead for electromobility.
What are your thoughts on the outcome of the recent European elections?
The votes indicate that parties questioning the decarbonization of transport are gaining support, suggesting that Europe will experience a slowdown in electromobility and even a sector freeze.
So much so that I am starting to meet with MEPs from Germany, Austria, Italy, and France, who are willing to do whatever it takes to stop what they consider to be “madness.”
The next two or three years will be crucial for the industry’s future.
Do you agree with the imposition of EU tariffs?
On the contrary, the AECDR advocates for a free market, allowing any brand to set up here and vice versa.
In our communications with the EU, we have expressed our disagreement with these.
What would be the ideal strategy?
A ten percent imposition is sufficient.
Why?
Competition with Chinese technology, which is very advanced, is essential for the development of electric mobility.
Imposing taxes on Chinese EVs will hinder this transition, slowing the development of electromobility in general.
If we aim for 100 percent electric mobility by 2035 and 2050, we need to offer competitive products accessible to all European consumers, not just the wealthy.
Currently, electric cars are mostly purchased by people with higher purchasing power, leaving out middle- and low-income earners.
To Chinese automakers, this is unwelcome…
They are concerned about the possible implementation of tariffs in Europe.
And Europeans fear there may be consequences…
Yes. They fear China will respond by imposing taxes on European products, which could significantly harm trade with the world’s largest market.
This would greatly affect the adoption of electric cars in EU countries, especially considering that Tesla manufactures in China.
If tolls are also applied to the company, the EV market could collapse.
Were premeditated steps taken?
Almost ten years ago, it was decided that mobility in Europe would be electric, but the consequences, such as the massive entry of Chinese manufacturers into the market, were not well considered.
If fees are imposed on their products, they could respond with tariffs on local goods such as olive oil, which would impact our exports.
Why do you think the slowdown is happening?
Different European governments have realized that they cannot subsidize the purchase of electric vehicles indefinitely.
When northern governments, such as Norway and Germany, started withdrawing incentives, electric car sales plummeted.
Additionally, many of those interested in buying an EV have already done so, which exacerbates the situation.
Do you think the price also has something to do with it?
Of course. When we talk about electric vehicles in the range of 18,000 to 20,000 euros, we are referring to very small cars, mainly designed for the city.
With a car at that price, it is not possible for families to use them for road trips.
For example, the Dacia Spring, an electric car that could be used on the highway, costs around 35,000 to 40,000 euros, a price that is not accessible to everyone in Spain and southern Europe.
We need to advance technologies so that battery prices drop in a few years.
Even so, price is a factor, but the ability to recharge, meaning having enough charging points, is also crucial.
Without the necessary range, we will not get customers to buy electric cars en masse.
It is something that major brands need to rethink, along with the competition from those coming from China…
Chinese companies represent a great opportunity.
We have noticed a significant improvement in the quality of their products, with very competitive prices, which has allowed them to gain ground on our continent.
Which brands are the most sought-after for EVs?
Tesla remains the leader in the electric vehicle market, but in the medium term, other brands, including Chinese ones like MG and BYD, as well as European ones like Renault and Ford, will start to compete strongly.
We foresee that the hegemony of the American company will diminish as Chinese firms gain more prominence.
