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“Europe can reduce the share of Chinese electric vehicles with a supply chain.”

Virgilio Machado by Virgilio Machado
October 30, 2024
in Latest News
Reading Time: 2 mins read
0
Volkswagen, Audi e Porsche vão adotar a norma de carregamento elétrico da Tesla

The International Energy Agency (IEA) argues that the European Union (EU) can cut the market share of Chinese electric vehicles in half by 2035 if it establishes an integrated supply and production chain that reduces production costs.

The position of the IEA is outlined in a report on strategic industries for the energy transition, released on Tuesday, which asserts that at the current pace, Chinese vehicles will reach 40% of the electric vehicle market share in the EU by 2035, double the current 20%, despite the recent tariffs imposed by Brussels.

The report further indicates that for the European automotive industry to compete in the electric vehicle market, it is essential to reduce manufacturing costs and achieve full integration of supply chains, including batteries, which account for about 40% of the total cost.

The IEA noted that European production of technologies for the energy transition will depend on the success of implementing the Zero Impact Industry Regulation, which it considers to have “easily achievable” targets in wind and heat pump technologies, but with “much greater” challenges in the automotive sector.

The document emphasized that, globally, the uniform development of clean technology industries and their trade will be crucial to mitigating climate change.

China is currently the world’s main center for the production of clean technologies; however, the IEA emphasizes that this is not solely due to low production costs, but also to other factors such as the enormous domestic market, economies of scale, and companies and facilities that are highly integrated into the supply chain.

Tags: Agência Internacional de EnergiaAIEcadeia de abastecimentoCarros elétrciosChinaEuropatransição energéticaveículos elétricos
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