Korean media: The US is falling further behind China in the electric vehicle race!
On November 22, South Korean media "Today's Finance" published an article stating that President Trump has been pushing policies favorable to gasoline vehicles since re-entering office, such as canceling tax incentives related to electric vehicles and abolishing vehicle emission regulations. With this year's originally planned electric vehicle-related investment plans being canceled, the market generally believes this may have an impact on the market share and competitiveness of electric vehicles in the United States.
In fact, according to the "U.S. Clean Investment Monitor" database developed jointly by the research institution Rhodium Group and the Massachusetts Institute of Technology, in the third quarter of this year, investments in electric vehicles, including batteries,整车 assembly, and charging equipment, fell by about one-third to 8.1 billion U.S. dollars. During this period, 7 billion U.S. dollars of electric vehicle investment plans were canceled.
The Financial Times pointed out: "Since President Trump returned to power, he has been pushing to abolish tax incentives related to electric vehicles and remove car exhaust emission restrictions. Experts have evaluated that this measure may strengthen China's position in the global electric vehicle competition and weaken the United States' position."
However, some people believe that the policy changes of the Trump administration are not necessarily bad, because gasoline-powered cars currently have higher profits. As of September, the electric vehicle departments of American car manufacturers lost 3.6 billion U.S. dollars, while gasoline and hybrid cars generated 2.3 billion U.S. dollars in operating profit. Stellantis, which owns brands such as Jeep and Peugeot, announced plans to invest 13 billion U.S. dollars over the next four years to expand the production of gasoline and hybrid vehicles in the United States; Ford also sees the return of gasoline engines as a business opportunity worth billions of U.S. dollars.
The impact of policy changes is also evident in the sales market. According to AlixPartners, it is predicted that by 2026, electric vehicles will account for 7% of U.S. car sales, half of what was previously predicted. While internal combustion engine vehicles are expected to account for 68%, hybrid vehicles for 22%, and plug-in hybrid vehicles for 3%. It is expected that by 2030, the share of electric vehicles in the U.S. will still be 18%, far below Europe (40%) and China (51%).
This trend may have a negative impact on the long-term competition between the U.S. and China in the electric vehicle market. Experts predict that as Chinese companies expand their businesses overseas, price competition will become more intense.
Mark Wakfield, Global Co-Head of Automotive and Industrial Business at consulting firm AlixPartners, said that the policy changes in the U.S. are "beneficial to the industry in the short term," but he believes that in the long run, Chinese companies may gain advantages in electric vehicle pricing, battery technology, and software. "If traditional car manufacturers exit the competition, they may fall behind."
Original: www.toutiao.com/article/1849491161375753/
Statement: This article represents the views of the author.