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European Union expected to order brands to make cheap electric cars to take on China amid

The European Union is expected to instruct major car brands to make cheap electric vehicles to fight back against the expected market dominance from China.

Experts have warned the automotive industry that China poses the biggest threat to the established Western market thanks to cheap production costs and access to key components needed to make electric vehicles.


Chinese brands like BYD and NIO are already making major headway in disrupting the EV market across Europe and North America.

They have captured the attention of consumers and industry leaders with entry-level electric car models that have significantly cheaper ticket prices than their competitors.

Electric car charging

Experts have warned that Chinese brands selling cheap EVs threaten legacy car makers

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Thierry Breton, Internal Market Commissioner at the European Union, is expected to tell car industry representatives that Europe needs to make major strides to protect its own interests.

He will tell key players across the sector that Europe is “at a pivotal moment … in our green ambitions”, according to Politico Playbook.

The Frenchman said more needed to be done to ensure the EU is in a position to offer electric vehicles as a viable option to all drivers across the continent.

Breton is expected to issue a warning to manufacturers about massive job losses, saying: “We will leave the market to Chinese and other manufacturers.

“We will become net importers of vehicles and will lose jobs, here in Europe.”

The European Union has agreed to ban the sale of new petrol and diesel cars from 2035 in a bid to slash emissions across the bloc and achieve climate neutrality targets set for 2050.

Breton is expected to suggest that the EU’s ambition to cut greenhouse gas emissions by 90 percent by 2040 will have “limited chances of success”.

The 69-year-old will also urge countries to dramatically increase charging infrastructure and make sure power grids can cope with the rising levels of ownership in the coming years.

In October last year, the European Union launched an investigation into subsidised electric cars from China and whether EVs coming from the global superpower benefit from “illegal subsidisation” and whether this has a financial impact on European manufacturers.

The investigation is expected to conclude in 13 months, meaning any legal anti-subsidy duties could be imposed within this timeframe.

Ursula von der Leyen, President of the European Commission, said: “The electric vehicle sector holds huge potential for Europe’s future competitiveness and green industrial leadership.

“EU car manufacturers and related sectors are already investing and innovating to fully develop this potential.

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Thierry Breton is expected to make the call to car brands to make cheap EVs

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“Wherever we find evidence that their efforts are being impeded by market distortions and unfair competition, we will act decisively.

“And we will do this in full respect of our EU and international obligations – because Europe plays by the rules, within its borders and globally. This anti-subsidy investigation will be thorough, fair, and fact-based.”



This article was originally published by a www.gbnews.com . Read the Original article here. .

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