"China Throws a Wrench into the Electric Dreams of European Automakers, New Regulations Level the Playing Field with Gasoline"
While China may appear to be a paradise for electric vehicles, the reality is far more complicated. European brands find themselves overshadowed by the overwhelming majority of electric car sales in China. Additionally, new regulations that aim to create a fair competition between electric and combustion engine cars further complicate the massive investments made by European manufacturers in electromobility.
We have emphasized countless times in our articles the risks associated with relying solely on political regulations instead of considering customer preferences. On one hand, it may be convenient to offer what is mandated and not worry about other factors. On the other hand, neglecting to consider the desires of consumers and relying solely on political regulations may lead to a situation where the regulations are changed or eliminated due to various circumstances. In such a case, manufacturers would be left without products that align with customer demands.
By striving to meet the needs of their customers to the best of their abilities, manufacturers can avoid finding themselves in such a predicament. This principle applies to nearly every industry. If, for instance, we were offered millions of dollars tomorrow to write positive articles about electric cars, even if they didn't deserve the praise and every informed reader knew it was false, our short-term gain would be overshadowed by the fact that only a handful of people would be interested in our articles. Once the subsidy is withdrawn, we would lose both the financial support and the trust of readers, as no rational person would rely on a media outlet that opportunistically lied for years.
Car manufacturers face a similar situation, and many of them can only hope that the wave of political regulations, bans, and redistributions never ceases. However, this hope is unrealistic. In the long run, technical, economic, and rational considerations always prevail. The complete electrification of personal cars, to the extent currently proposed, does not favor the interests of manufacturers. They are now beginning to experience this reality, ironically, from China.
China has already recognized that the "zero emissions" claim of electric cars is as much of a deception as "clean diesel." It is one of the biggest falsehoods in automotive history - no car, regardless of its engine type, is created or operates without emissions. Every electric vehicle generates both CO2 and harmful substances like NOx during operation. The difference is that these emissions do not exit through the exhaust pipe like in a combustion engine, but rather result from the electricity generation process or the production of the devices used in electric vehicles. Scientists are still debating how to accurately account for indirectly generated emissions, but one thing is certain - they are never zero. Reporting zero emissions for electric vehicles in Europe is, at best, negligence and, at worst, intentional deceit.
While we doubt that the European Union will change its approach in this regard, China has decided to be more honest with itself. It is fascinating that an openly communist country desires to deceive its people less than the supposedly democratic EU, but it speaks volumes. Currently, China represents a crucial market for electromobility, and European manufacturers, particularly those from Germany, aim to succeed there with their electric cars. They have tailored their offerings to align with China's expected demand for electric vehicles, but their expectations have not materialized as hoped, and perhaps they never will.
The challenge for European manufacturers is that the Chinese government has no plans to ban combustion engines, so they cannot rely solely on electric vehicles. However, there are quotas for electric cars, and European manufacturers struggle to compete with strong domestic competition. Unlike domestic brands, European manufacturers primarily focus on the export market, and their success in China depends on the acceptance and demand for their electric car offerings.
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