automotive
‘It’s stupid’: why western carmakers’ retreat from electric risks dooming them to irrelevance
The Iran war should be a wake-up call about the costs of not going full throttle towards EVs as Chinese have done, experts say.
TL;DR
- Western carmakers are shifting focus from EVs back to combustion engines, a move compared to Detroit's failure to adapt in the 1980s.
- Chinese EV brands like BYD and Leapmotor are gaining significant market share in Europe, with BYD becoming the world's largest EV seller.
- Companies like Stellantis and Volkswagen have made substantial write-downs on EV investments, leading to a prioritization of short-term profits from petrol and diesel cars.
- The Iran war and soaring oil prices have renewed interest in EVs, highlighting the potential shortsightedness of the Western retreat.
- Experts believe a lack of clear direction from European policymakers and Western manufacturers' continued reliance on combustion engines are hindering progress.
- Chinese companies have invested heavily in battery and software technology, giving them a competitive edge.
- Western manufacturers are losing ground not only in Europe but also in emerging markets like India, Mexico, and Brazil due to the appeal of cheaper Chinese EVs.
- Some policymakers and former industry executives argue that Western carmakers are losing the technological battle with China and are themselves responsible for the instability.