EU aims to match China's EV costs by 2028 using Chinese tech
According to industry analysts, the European Union aims to narrow the cost disparity with Chinese electric vehicle manufacturers by 2028 or 2029. The automotive industry, vital to Europe’s industrial output, employs more than 13 million individuals within the EU. In a note from May, Harald Hendrikse, Citi's European head of autos research, outlined this timeline, which relies on two key factors: effective enforcement of 'Made in EU' standards in the proposed Industrial Accelerator Act (IAA) and sustained European access to Chinese technology and expertise. Hendrikse emphasized that the Chinese sector is open to partnering with Western firms, facilitating the swift transfer of newer technologies. Nonetheless, job losses in Europe are anticipated as a consequence. Industry insiders express optimism that the previously daunting gap may be closing.
Key facts
- EU automotive sector employs over 13 million people directly and indirectly.
- Industry insiders predict European EV cost parity with China by 2028 or 2029.
- Harald Hendrikse of Citi proposed the 2028-2029 timeframe in a May note.
- Parity depends on correct implementation of 'Made in EU' requirements in the proposed Industrial Accelerator Act (IAA).
- Continued European access to Chinese technology and know-how is essential.
- Chinese industry is completely open to working with Western manufacturers.
- European job losses would be among the trade-offs.
Entities
Institutions
- Citi
- European Union
- Industrial Accelerator Act (IAA)
Locations
- Europe
- China