BTW, the EU recently dropped their plan to ban new combustion-engine cars from 2035 after pressure from the European auto sector. It's another case of the West talk the talk, while China actually walk the walk.
New Energy Vehicles (NEVs) in China
- Thread starter supercat
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BTW, the EU recently dropped their plan to ban new combustion-engine cars from 2035 after pressure from the European auto sector. It's another case of the West talk the talk, while China actually walk the walk.
It makes sense for the EU to do so, since when they make that law before 2020s their plan was that they will be the ones to lead and dominate renewable industries including EVs , but they realized recently that China has taken a massive lead in renewables industry and that China is by far the worlds leaders now, that’s also why their car makers have been pressuring the EU commission to postpone or repeal that law, since it affects their margins a lot and they know it will only benefit Chinese players more, so it’s a rational decision for Europe . However , it’s too late for Europe to turn back and it’s inevitable the world is moving towards EVs , so it’s meaningless to postpone their ban on EVs by 2035 anyway.
However , for China it makes no sense to even tolerate and support gas cars anymore. I can’t think of one single reason for doing so. In fact the deadline for China should even be moved forward actually, since China is totally dominant in EVs , so the bigger the industry grows the better for Chinas economy and companies . Western players are still far more dominant in gas cars, so no reason to support that anymore .
the purchase tax exemption for NEVs reduced, meaning vehicles priced at 200,000 yuan will have to pay nearly 10,000 yuan more in tax.
And now that fuel prices have risen, buying a gas car turns out cant save you any money, NEV conpmays are again advertising "saving nearly 10,000 yuan in fuel costs annually"
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I remember so many Biden Democrats seething and raging a few years back when European automakers teamed up with various Chinese EV start-ups. As if we had betrayed them or something.
But what was the option? Well, we can see it now. Nothing. Except to whine about Chinese carmakers. As someone once said: plan beats no plan.
But what was the option? Well, we can see it now. Nothing. Except to whine about Chinese carmakers. As someone once said: plan beats no plan.
Chinse gasoline cars are now way more competitive than before. Since Europe has given up banning gasoline cars, it makes sense for China to promote both EV and gasoline cars worldwide.
Actually there was a plan, as an example the Canadian governments (multiple levels) doled out over 50b in tax incentives/direct subsidies to kickstart EV production in the last few years (aside: but when China does it, evil!). Certainly this is not an American plan, but it does involve European companies and the North American market as a whole. What the F happened? Complete and utter failure…
Stellantis: First closed plant they promised to keep open for future EV production (apparently they made a Dodge Charger EV that no one ever bought, and planned to make a Jeep model which was moved to the US to appease Dear Leader), then they went on to cancel all future EV and even PHEVs. Latest reports have them most likely rebadging Leapmotor models and negotiating with other Chinese companies to license production.
Northvolt: I think we all know the story…
VW: Plans still in place, but the slow speed and horrible uncompetitive-ness of their current EVs brings into question how much value this plant will bring. VW already has thrown out MEB platform for the China market as being uncompetitive. This platform is responsible for the majority of their current EV sales in Europe.
What you need to keep in mind is that this failure didn’t happen recently since Trump took office and began killing EVs and attacking Canadian business. Northvolt was already bankrupt before he took office for round 2. It also didn’t happen over a long period of time, these deals were signed 3-4 years ago, so in that period, before ground could even break, the market shifted from believing you can compete with Chinese technologies to being completely devastated. The EV Op Sindoor…
China could do the funniest thing now — flood the EU market with gas cars now and in ten years time when significant percentage of Chinese vehicles are EV and Chinese millenial trolls are in charge of policy making, hit their exports with emission tariffs.