EU targets to cut carbon dioxide emissions from vehicles,including a 100 percent reduction for cars by 2035,are no longer feasible,the heads of the European automobile manufacturers'and automotive suppliers'associations said on Wednesday,Reuters reported.
The EU has long positioned itself as a global leader in climate action,with ambitious policies designed to cut greenhouse gas emissions and accelerate the shift toward a green economy.Yet,recent concerns raised by the EU's auto industry leaders that the"original goals are no longer feasible"reveals the predicament of the industry in Europe and the severe challenge facing the bloc's climate actions.
As European industry leaders point to delays in the clean energy transition,a crucial question arises for policymakers and the wider economic community:can such concerns,rather than being used as justification for protectionist policies,actually become the basis for a more pragmatic,cooperative industrial strategy that generates momentum for Europe's electric vehicle(EV)sector?
The transition to EVs in the EU is proving far slower than anticipated.As of June,EVs accounted for 15.6 percent of the EU market share,according to data from European Automobile Manufacturers'Association.This is far below what would be required to meet the 2035 ban on internal combustion engines.By publicly acknowledging the infeasibility of current goals,industry leaders are highlighting the urgent need for moves that close the gap between ambition and implementation.
In this context,European Commission President Ursula von der Leyen is set to host automotive sector executives on September 12 to discuss the future of the industry,Reuters reported,adding that the EU's automobile sector is facing the twin threats of"Chinese competition in EVs"and US tariffs.Yet,the claim is problematic.
It is clearly not appropriate to classify both the Chinese competition in EVs and the US tariffs as"threats."The additional US tariffs are typical protectionist moves that go against market rules and pose a threat to the EU's automobile sector.
By contrast,Chinese competition in the EV sector stems from technological innovation,economies of scale,and complete industrial-chain integration.In 2024,China exported more than 6.4 million vehicles,with EVs accounting for a rising share of that total.Chinese firms such as BYD have built strong positions through consistent investment in research and development and cost-effective production.
Labeling this competitive edge as a"threat"is misleading.Instead,healthy competition should be seen as an incentive for European firms to innovate faster and improve their cost efficiency.Resorting to protectionist tariffs on Chinese EVs risks undermining the cross-border cooperation that has long benefited both sides.
The Chinese and European automobile industries have enjoyed long-standing mutually beneficial cooperation.Joint ventures,technology partnerships,and cross-investments have helped European brands expand in the Chinese market while enabling Chinese firms to contribute to Europe's supply chains.
As both sides are committed to taking a responsible approach to push the energy transition,the automobile industries of both sides face a new situation of cooperation and competition.While healthy competition can push both sides to rapidly improve their technologies and bring down prices,raising trade barriers and disrupting business cooperation is a lose-lose scenario.
For example,Chinese electric battery giant Contemporary Amperex Technology(CATL)is investing in Hungary and Spain,underscoring how Chinese investment is already helping to anchor Europe's EV supply base.
This illustrates that deepening industrial cooperation with China is benefiting Europe's transition-assuming that the regulatory framework offers stability and long-term clarity.Rather than erecting trade barriers,Europe needs to pursue a strategy of industrial cooperation combined with a balanced approach,encouraging both domestic innovation and foreign investment.
Europe's EV sector faces many challenges,but it also has many opportunities.The industry's warning that emissions-reduction targets are"no longer feasible"reflects real bottlenecks in Europe's EV transition.But this need not weaken Europe's green ambition.On the contrary,if it prompts a more balanced mix of strict goals,flexible transitional measures,and openness to international cooperation,it could inject new momentum into the EV sector.
Protectionism,whether in the form of US tariffs or EU tariffs on Chinese EVs,risks a lose-lose outcome.By contrast,a strategy anchored in innovation,cross-border cooperation,and pragmatic industrial policy could turn today's challenges into a springboard for Europe's next phase of green competitiveness.
If the September 12 meeting between EU leaders and auto executives can deliver such a recalibration,the statement of infeasibility may be remembered not as a setback,but as the moment when Europe's EV industry found its most realistic path forward.
