Europe wants to boost affordable urban electric cars to combat the Chinese threat.

One of the major problems facing the European automotive industry is the approach it has taken to the transition to electric cars. Major European manufacturers have made significant investments in platforms, engines, and technologies geared toward electric cars, which have not been offset by demand from European buyers. Major European manufacturers decided to invest heavily in large, high-priced electric vehicles in an attempt to recoup their investments as quickly as possible. However, sales of fully electric cars have not fully taken off in the higher-value segments. In contrast, Chinese offerings have been the main drivers in the urban, utility, and compact vehicle segments.

Ursula von der Leyen, President of the European Commission, presented her plan to the European Parliament in Strasbourg to counter this trend and incentivize European manufacturers to produce affordable urban electric vehicles in their existing plants on the continent. Von der Leyen's plan assumes that "millions of Europeans want access to affordable electric cars," while also pointing out that the European Union cannot cede this market segment to Chinese manufacturers.

The European Commission has designed an investment plan of more than €1.8 billion to support battery production in the Old Continent, one of the essential strategic elements for creating a European network that supports the production of electric vehicles. Furthermore, the EU roadmap includes a new public procurement model aimed at incentivizing European automotive products across various administrations.

Manufacturers don't see it clearly

If during the month of AugustThe president of Mercedes-Benz delivered a warning to European authorities regarding the bans and vetoes on fuel-powered vehicles.This week, Stellantis Group CEO Jean-Phillipe Imparato reiterated the need to rethink bans on combustion-powered cars, as "the economic situation and the charging station network" do not yet encourage or stimulate mass demand for fully electric vehicles.

Imparato, on the other hand, points out that the manufacture of simple and affordable combustion vehicles is the key to combating emissions. According to the French executive, the average age of the European vehicle fleet is twelve years (in Catalonia this average is even higher) and believes that modern, lightweight combustion vehicles with modest power (with a top speed of 110 km/h and designed for urban and semi-urban use) could be a catalyst for the current situation. This was a position also defended by the former CEO of Renault and Seat, Luca de Meo, who went so far as to state that the future of the European automotive industry should involve small, lightweight vehicles with small-displacement gasoline engines and a very competitive price, such as the example of Kei Cars. From Japan, small urban cars with modest performance and very low fuel consumption that are very popular in the land of the rising sun.