T&E Analysis: Europe far behind North America in e-mobility investments

North America is far ahead of Europe in investments in electric cars, battery production, and charging infrastructure, as shown in a new report by the European environmental umbrella organization Transport & Environment (T&E). Weak EU electrification targets in the 2020s and high US subsidies have resulted in Europe securing only about a quarter (26%) of the investments announced globally for electric cars between 2021 and 2023. Over a third (37%) went to the USA, Canada, and Mexico, despite having less automotive industry in this region. T&E urges German and European policymakers to end the uncertainty around the combustion engine phase-out in favor of strong industrial policies. This is the only way a supply chain for electric cars can emerge.

Europe falls behind North America

Last year, 42 billion euros were invested in electric mobility in Europe, compared to 9 billion euros in China—where automakers had started investing in electric cars and batteries earlier—and 58 billion euros in North America. The growth rate of investments in Europe declined last year compared to 2022. The likely reason is that automakers do not need to meet EU CO2 standards between 2025 and 2030. Within the European continent, the most investments between 2021 and 2023 were made in the United Kingdom (26 billion euros), Germany (13 billion euros), and Spain (10 billion euros). Italy, an important production center for Stellantis, attracted only 1.3 billion euros.

"The FDP wants to dilute the combustion engine phase-out with sham solutions like e-fuels, and recently Friedrich Merz has also joined the debate with populist rhetoric – instead of presenting his own visions for our automotive industry and our climate. This is quite short-sighted for someone who wants to become Chancellor. In China and the USA, the largest automotive markets in the world, billions are being invested clearly in e-mobility. Anyone who wants to become Chancellor must now do everything to ensure that Germany remains one of the leading locations for the automotive industry in the future. For this, our industry needs planning security from politics," criticizes Sebastian Bock, Managing Director of T&E Germany.