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The US export market for vehicles will definitely suffer. But it was already suffering even before the tariffs. It's very simple: the EV market is growing at a
by jillesvangurp 2y ago
The US export market for vehicles will definitely suffer. But it was already suffering even before the tariffs.
It's very simple: the EV market is growing at around 20% globally this year. That's despite all the whining from some manufacturers that there's no demand for EVs. Which is true but only for their EVs. Because they simply aren't good enough. Too expensive to make. Not comparing well to cheaper competitors, etc. Take your pick. They aren't selling well and that's a problem for the manufacturers that are making them. But it's not true for other manufacturers that are growing. Even in the US the EV market is expanding.
Either way, that EV market growth is in the context of an overall car market that isn't growing anywhere near 20%. So, EVs are growing at the expense of legacy car makers. Their market share is effectively shrinking. By about 1/5th a year. They have cost related to that for downsizing production capacity, getting rid of staff (and the associated compensation packages), dealing with related strikes, etc. Many of these companies won't make it. It would take many billions in $s of investment in R&D, new products, new production facilities, etc. And with many of these companies slowing down those investments, it's not going to magically improve for them. It's a death spiral.
There are also no signs of EV market growth slowing down much further. With price parity effectively there if you have access to BYDs (which much of the world does), it's game over for ICE.
- cen4 2y agohttps://en.wikipedia.org/wiki/Managed_decline https://en.wikipedia.org/wiki/Managed_decline
- jillesvangurp 2y agoGiven the overall panic levels in the industry, I'd say it's not that well managed.
- edwcross 2y agoDon't worry, in Europe, the incumbent manufacturers have a much better way to prevent EV sales: lack of charging spots. Unless you are rich enough to own a house and install your own charger, the law still does not mandate, even for apartment buildings currently under construction, electrical plugs in parking spots. Which means that, if you rent, you can't buy an EV. If you own your apartment, you STILL can't buy an EV (unless you convince everyone else to spend at least 5k€/spot to install such plugs, and wait 2-3 years).
- pbasista 2y agoThat is a fair point. But the car manufacturers have no influence over whether the charging spots are going to be built or not. Even if there is no mandate to have them at the apartment buildings, the customers will naturally prefer those dwellings that do have them. Which in turn will create pressure on the building owners to have them installed.
- huijzer 2y agoI don’t know where you base your claim on. Do you own an electric car in Europe? I live in Europe and own an electric car. There are fast chargers everywhere and also some slow chargers near my house. I mostly drive in the Netherlands and Germany. Charging infrastructure is not a problem at all! If there is a problem though, it’s German electricity prices. Charging is almost as expensive as refueling a car per km.
- jjallen 2y agoI have had an EV in Switzerland for four years. It’s not impossible but is hard. And no we don’t have as many as you think because half the time the ones that purport to be available don’t work. If you drive tons that would be another story. Most trips are shorter so EVs are more viable. I also could have asked to charge from the wall in our building but haven’t had to due to other charging options.
- piva00 2y agoRented an EV to drive from Stockholm -> München -> Geneva -> Paris, there was plenty chargers to not make me anxious through the whole drive. Europe is a continent, maybe the issue you allude to is more localised? Where exactly in Europe do you see an issue with lack of charging spots?
- golli 2y agoI think (as already mentioned in other replies) it is usually less about chargers along major highways, but about charging at home/work. Which is especially relevant in places like Germany, where people primary rent rather than own their home and electricity costs are relatively high. If you can't charge over night for cheap and maybe even combine it with your own solar installation, then EVs are losing a good part of their value proposition.