The move by the European Union to impose tariffs on Chinese...

The move by the European Union to impose tariffs on Chinese electric vehicles (EVs) is not a positive development for the industry as a whole. While it may provide a short-term advantage for some European carmakers, it is detrimental from a customer perspective and could hinder price reductions for EVs, making them less accessible to the mass market. The tariffs may alleviate the pressure on carmakers to develop affordable EVs for the masses in the short term.

However, in the long run, China is likely to establish manufacturing facilities in countries like Hungary and other European nations to circumvent these tariffs. This process will take time, rendering the tariffs ineffective eventually.

Additionally, the recent election results in the European Parliament raise concerns about the proposed ban on internal combustion engine (ICE) vehicles by 2035 in the EU. Voices are growing louder, suggesting that this ban may not materialize. EV sales are currently declining, and the goals set for EV adoption seem distant.

There are several reasons contributing to this situation:
- First and foremost, EVs are currently too expensive for most consumers.
- The German "range anxiety" persists, referring to the fear of running out of battery charge while driving.
- The infrastructure for public charging is being rolled out slowly, which is a significant issue for the approximately 50% of Germans who live in rental properties without access to home charging or solar panels.
- High energy prices, with electricity costing around 70-80 Euro cents per kWh, make EVs more expensive to operate than diesel or gasoline vehicles.In summary, the industry is likely to face headwinds in the near future.

The situation is not ideal, but we will have to navigate through these challenges as they arise.