The observation is worrying: electric cars, held as the standard of the energy transition, could see their costs explode by 2030. Luca de Meo, general manager of Renault, has sounded the alarm. But what are the causes and possible solutions?
Electric car: a future under pressure for European manufacturers
Luca de Meo, during an interview with the Flemish newspaper The Timeexpressed its concerns about the evolution of production costs of electric vehicles. According to his forecasts, an increase in 40 % production costs could arise by 2030. An increase which mainly results from two factors: the intensity of European regulations et increased dependence on foreign raw materials.
- Binding European regulations : The strict standards imposed by the European Union in terms of reducing CO₂ emissions and safety are increasing research and development spending. De Meo estimates that a quarter of R&D investments will be dedicated to meeting these regulatory constraints in the next five years.
- Dependence on batteries and China : Batteries, a key element of electric cars, are mainly produced in China. This domination places European manufacturers in an unfavorable position. Chinese manufacturers benefit from privileged access to raw materials, which allows them to keep their costs low and impose high prices on Europe.
Infrastructure still insufficient to successfully complete the transition
Another major problem mentioned by Luca De Meo is the European infrastructural delay. With charging networks considered insufficient and slow, the transition to electric is slowed down. To achieve climate goals, the development of more efficient and widely deployed infrastructure is imperative. De Meo emphasizes that the need for charging stations should be multiplied by six to seven times.
| Current state of infrastructure | Estimated need by 2030 |
|---|---|
| 500,000 terminals in Europe | 3 to 3.5 million needed |
The European automobile industry fears a loss of competitiveness against China
China is not just a supplier of parts for electric cars. She is also a formidable competitor. Luca De Meo admits that Chinese manufacturers have ten years ahead on Europe in terms of batteries. Their control of raw materials and lower costs allow Chinese manufacturers to flood the market with affordable cars.
Faced with this reality, European brands risk being marginalized in their own market. Electric car registrations in France, for example, have fallen by 3.2% in 2024reaching only 1.72 million units, far from the 2.2 million in 2019.
The solutions envisaged: what avenues for electric cars in Europe?
To counter these challenges, several axes are explored:
- Investing in local battery production : Developing European independence in terms of batteries is essential. This requires strategic alliances and massive investments in the supply chain.
- Simplify regulations : A review of European standards could allow manufacturers to reduce their expenses while remaining competitive.
- Innovate to lower costs : Making electric cars more affordable requires constant innovation in materials, processes and technologies.
Can Europe catch up with China in terms of technology? Do overly strict regulations harm local innovation? And above all, will consumers be willing to pay more for electric vehicles, despite efforts to make them affordable?
