The United States and Europe are both 'falling behind'... The electric vehicle era is fading away.

The United States and Europe, which dominate the global automotive industry, are openly revealing their stance on 'electric vehicle halts.' Following the chasm (a temporary decline in demand), the interests of advanced automobile nations are aligning, causing the anticipated outline of the 'electric vehicle era' to become blurry again. Global automakers are also revising their strategies by reducing electric vehicle production.

According to the automotive industry on the 6th, the European Union (EU) recently indicated a relaxation of automotive carbon emission regulations. The EU, which has historically enforced strict environmental regulations on the automotive industry, starting with the 'Euro 1' standards for diesel vehicle emissions in 1992, has shifted its stance as the era of electric vehicles approaches.

 

 

The EU aimed to reduce the average new car carbon emissions by 15% compared to 2021 this year, but a three-year grace period is likely. Germany and France oppose this, choosing to extend the era of internal combustion engine vehicles. For these two countries, which have led the global internal combustion engine vehicle industry, protecting their domestic automotive industries takes precedence over environmental concerns. The threat from China, which has rapidly grown in the electric vehicle market with companies like BYD, is also causing concern within the EU. However, the final decision will be made through a vote among member states within this month.

Following China, the United States, the world's second-largest electric vehicle market, is also facing concerns about a return to internal combustion engines on the roads as President Trump, who advocates for the abolition of electric vehicle mandates, has been re-elected. In fact, excluding China and the United States, electric vehicle sales in major countries have significantly declined, indicating that the era of electric vehicles is not imminent.

 

In the case of pure electric vehicles (BEV), Europe saw a 1.3% decrease in sales last year compared to the previous year, while Japan experienced a sharp decline of 33.8% during the same period. South Korea, despite the launch of dedicated electric vehicles and the active efforts of Hyundai Motor Group, has been falling behind for two consecutive years. The Korea Automobile Mobility Industry Association reported in the "Global Electric Vehicle Market Status" report that "with the inauguration of Trump's second term, there is a possibility of revising or abolishing the Inflation Reduction Act," and also noted that "Europe is expected to see a slower transition to electric vehicles than anticipated due to increasing demands for easing carbon dioxide emission regulations."

German car manufacturers, who have dominated the global automotive industry for over 100 years, are immediately reducing their production targets for electric vehicles and are pleased about it. Germany, home to Volkswagen, Mercedes-Benz, and BMW, accounts for over 20% of the total industry sales from automobiles. In particular, Volkswagen aimed to invest 180 billion euros in electric vehicle development and facility investments over the next five years, but recently cut 10 billion euros from that amount. This is roughly 15.577 trillion won. Mercedes-Benz, which had set a goal of 100% electric vehicle sales by 2030, has also changed its plan to sell only half of its vehicles as electric. BMW is also implementing a so-called 'multi-powertrain strategy,' indicating that it will not focus solely on electric vehicles.

 

Once considered part of the global 'Big 3', American automaker GM has scrapped its goal of producing 1 million electric vehicles this year. Ford also reversed its plan to sell only electric vehicles in Europe starting in 2030. Japanese Toyota lowered its global electric vehicle sales target from 1.5 million to 1 million by 2026, and postponed the production of electric SUVs at its Kentucky and Indiana plants. Honda also announced that it will focus on hybrid and other so-called 'bridge vehicles' rather than electric cars for the time being.

Hyundai Motor in our country has postponed its goal of selling 1 million electric vehicles worldwide by one year to 2026. Im Hyun-jin, senior researcher at the Korea Automotive Research Institute, stated in a related report, "Changes in each country's eco-friendly vehicle policies will lead to an expansion of the hybrid vehicle market," and expressed concern that "the contraction of the U.S. electric vehicle market could result in decreased exports and production of electric vehicles by domestic companies such as Hyundai."

 

 

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As long as proper innovation in electric vehicle batteries does not emerge...

 

It seems that the peak era of electric vehicles is still far away...