The French asset management company La Financière de l’Echiquier (LFDE) believes that the imposition of tariffs on electric vehicle (EV) imports by the European Union (EU) and the United States (US) aims to “give more time” to Western manufacturers to work on “costs and remain competitive” in the commercial battle to achieve “affordable” electric mobility.
The firm assures that in response to the subsidies paid by the Chinese government to its automakers , European and American authorities have deployed protectionist measures by taxing the imports of Chinese EVs.
LFDE believes that these trade barriers should help accelerate the relocation of this value chain, creating jobs in Europe, reducing dependence on Asia, and decreasing the impact of its manufacturing process thanks to a lower carbon energy mix.
At the same time, in Europe, the “main problem” for the growth of this market is the affordability of EVs, according to a note from the asset manager’s head of sustainability research, Coline Pavot.
According to the manager’s estimates, electric cars cost between 25 and 50 percent more than an equivalent petrol or diesel car, but their operating cost is 36 percent lower.
According to the analyst, the electrification of vehicles is “vital” to achieve climate targets approved by the European Commission, including the ban on the sale of combustion cars by 2035 while trying to reduce the West’s dependence on oil.
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