Europe wanted to lead the world in electric cars. Car manufacturers can’t keep up

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As European EV sales and production lag behind this, a blame game is brewing between carmakers and politicians. “A regulatory framework that ignores customer needs and market realities — while failing to create the necessary conditions for alternative technologies — cannot succeed,” a BMW spokesperson said in a written statement to WIRED, explaining that the company opposes the 2035 ban. It added that unless “charging infrastructure, availability of renewable energy and access to raw materials” were addressed, the ban would shrink “the entire vehicle market”.

Given that the automotive industry provides employment 13.8 million people across Europe and accounts for about 7 percent of the continent’s GDP, such a contraction would be economically catastrophic.

Low car sales have already prompted Volkswagen to announce plans to close at least three factorieswhich caused concern in Germany about the country’s economic prospects. The far-right political party Alternative für Deutschland (AfD), which is currently second in the polls ahead of Germany’s snap general election in February 2025, does not support a ban on internal combustion engines and has made the perceived economic cost of environmental policies a key part of its messaging.

“Let’s put it bluntly – consumers just don’t believe in e-mobility,” says Beatrix Keim, director of CAR Center for Automotive Research. “Vehicles are perceived as too expensive, people are worried about battery safety and also concerned about the cost of charging.” She believes both politicians and industry need to play a role in changing this, both through subsidies and investment in infrastructure, such as charging solutions, and by creating cheaper vehicles. “This could be tactical pricing, discounts, rebates or simply price reductions – which of course must be balanced with financial gains,” she says. “But overall, they (both) need to make the public better understand e-mobility and clear up some of the myths, such as battery safety.”

In an effort to keep their factories and technology alive, some European automakers floated the idea of ​​”clean” fuels as a means of continuing sales of internal combustion engine cars past the 2035 deadline. Germany was at the forefront of this, successful campaign in 2023 for vehicles that run on “e-fuels” to be exempted from the ban. E-fuels, which are still in the research and development stage, are produced by combining hydrogen and carbon dioxide and, according to their supporters, emit significantly less emissions than gasoline.

Not all industry experts are convinced, however. “E-fuels are bullshit,” says Peter Mock, managing director for Europe at the International Clean Transport Council. “The efficiency of these fuels is terrible, which means prices are very high—and will stay high.” He also believes talk of alternative fuels is confusing to consumers—which could further hurt EV sales. “Electric cars are simply the most efficient, cheapest and most convenient means of transportation and we need to communicate that,” he argued.

Of course, the 2035 ban. will only apply to European Union countries, while the continent’s carmakers will continue to sell globally. One solution may be to turn to US markets, where EV sales are forecast during a Trump presidency it’s already cut.

 
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