Studies

: Electric mobility in Europe: reconciling the ecological transition with industrial survival

Electric vehicles (EVs) in the EU face growing turbulence as shrinking consumer subsidies coincide with intensified competition from lower-cost Chinese manufacturers. Recent EU measures - higher tariffs on Chinese EVs and a strategy to reinforce the full industrial value chain - aim to safeguard Europe's automotive capabilities. Yet the easing of CO? rules for combustion engines and the possible 2026 review of the 2035 phase out date illustrate the challenge of balancing ecological transition, industrial resilience, and household purchasing power.
This paper argues for an "electrification shock" to accelerate scale and reduce costs rather than slowing the transition. Demand-side priorities include adapting subsidies to national energy-price conditions, requiring public and corporate fleets to integrate a minimum share of EVs, and ensuring the availability of affordable entry-level models. On the supply side, large-scale support for European battery production and sustained tariff protection are essential to narrow the cost gap with China, while partnerships with Chinese firms must secure genuine technology transfers and protect employment.
Such measures must be anchored in a stable and predictable regulatory trajectory, as policy reversals risk deterring investment and slowing the decarbonisation of road transport.

Keywords: Electric vehicles, decarbonisation, EU, China, automotive industry, battery