Is it the best place to invest in electric cars?

To see what is happening in the electric car sector worldwide, it is important to review how manufacturers’ investments are evolving in the different countries that are leading the way in zero-emission mobility. This report shows the situation of Europe compared to the rest of the planet.

What T&E reflects in its study is that the European Union It is making brands distrustful, since their policies related to the transition towards electric mobility do not clearly ensure that it is the ideal area to allocate most of the budgets.

Decarbonization goals create uncertainty

The encouraging objectives for the implementation of the electric vehicle weakened after the step backwards taken with Euro 7which will arrive later, and in any case it will be a much more lax regulation than what was initially proposed in the draft.

This being the case, and with real uncertainty about what may happen in 2035, the date from which the sale of cars with combustion engines in Europe is supposed to be prohibited, the investment destined by manufacturers from all over the world on our continent represented only 26% of global budgets in this objective (also in terms of battery packs and charging points), and after the sum of what was announced between 2021 and 2023 by the 19 main manufacturers spread throughout the planet.

Total, 70,000 million euros, compared to the 97,000 million euros that were allocated to North America, which took 37% of the international ‘pie’. A credit to the United States, since it is actually a small producing country, compared to the European potential.

The previous two are followed by China, with an investment in the eastern country of 51,000 million euros (19% of the world), and with a total amount of the three and the remaining territories (the closest is South Korea with 24,000 million euros) of 265,000 million euros.

Territories with the highest investments in electric vehicles

From the above, it should be noted that Europe has already recorded an investment growth rate below that made in 2022, largely because manufacturers no longer faced what was going to be tough emissions regulations. as initially planned.

Furthermore, in the three complete years prior to 2024, it should be noted that United Kingdom brought together 26,000 million euros of the total of 70,000 million cited, while Germany he was left with 13,000 million euros and Spain with 10,000 million euros.

USA can also boast that has a high investment from foreign manufacturers (more than double their own), who have been seduced by the facilities that the country has since the Inflation Reduction Law was implemented in 2022, in terms of the construction of electric vehicles and batteries in the country.

In Europe, however, it has an 80% injection from European brands, and the rest is mainly due to Tesla, Geely, Nissan and Ford. And it turns out that Stellantisfor example, has taken 74% of its budget to North America, and only 10% has stayed on its continent of origin.

It is also worth highlighting the importance of BMW, JLR, Renault, Mercedes-Benz, Nissan and Volkswagensince they are the only ones that have considered allocating more than 50% of their investments for electric vehicles in Europe.

From there the importance of Europe being more transparent and clear regarding its decarbonization policiesas it is even weighing down local manufacturers, who seek confidence outside European borders, given the results of the T&E report.