EU Targets for E-mobility Transition Are “Overly Ambitious”

Róbert Krisztián, President of the Association of the Hungarian Automotive Industry (MAGE) and Deputy CEO of Magyar Suzuki Zrt., warned at the Exclusive Leadership Forum that the European automotive industry is facing a critical period. He believes that the EU’s targets for the electric transition are overly ambitious and that domestic sales of electric cars also show that there is still a lot of work to be done in this area.

“Over the last few years, the electromobility transition has seemed to be more or less on track, although the car industry has repeatedly pointed out that the targets are overly ambitious. Recent market events have proven that EU regulations alone are not enough to only produce…and…sell electric cars,” Világgazdaság quotes the MAGE president as saying.

According to Róbert Krisztián, customers can only be sold products they need and are willing to buy. “In order to convince buyers on a mass scale to switch to electric cars, a lot of conditions have to be met together,” he said. He added that this year’s sales figures for electric vehicles also show that there are still many challenges to be overcome to make the transition a success. He also pointed out that

while the number of e-cars being developed is growing and many new models are coming onto the market, consumers will only switch if they get the prices and charging infrastructure they expect.

Today, it is more expensive to produce electric models than, for instance, hybrids. “The only way to help this situation is for EU governments to support the purchase of electric cars,” he said. As an example, he cited Germany, the largest European market, which collapsed after state subsidies were removed.

Yet in Hungary, it is precisely the introduction of government subsidies that has led to a boom in electric car purchases,

he pointed out.

“As far as the charging infrastructure is concerned, it is clear that the current situation is not sufficient, not reassuring for buyers. It is also clear from the mentioned issues that the transition to electrification needs to be addressed in a complex and comprehensive way. (…) In addition to manufacturers, the involvement of the European Union and national governments is essential,” the MAGE President noted.

“I believe that the European automotive industry is facing a critical period, while at the moment it seems that the take-up of electric cars has faltered. Let’s hope only in the short term,” he added. He stressed that

MAGE has asked the Hungarian government to support the intention that the European Automobile Manufacturers’ Association, ACEA, has put forward to EU decision-makers.

The international organization has appealed to Brussels to reconsider next year’s expectations and to try to adapt EU legislation and expectations to the actual market situation.

“If this does not happen, European car companies are expected to pay a penalty of around €16 billion to the EU coffers based on expected sales next year. And this would be at a time when all manufacturers and suppliers are having to invest huge sums in electrification. This is essential in order to optimize the production of electric cars and to bring more affordable models to the market,” the Deputy CEO explained.

Via Világgadaság, mage.org.hu; Featured image: Pexels