Everyday Electric Cars: The European Union and the United States are implementing subsidies for electric vehicles, according to a report from Yole Développement. On April 13, 2025, it was announced that both regions aim to support electric vehicles by introducing subsidy policies.
On April 10, during a press briefing by EU officials, it was expressed that the EU and China have reached an agreement concerning the minimum price threshold for electric vehicle manufacturing in China. This aims to counterbalance the EU’s plan to commence subsidies on electric vehicle exports to the EU starting in 2024.
EU Trade Commissioner Maros Sefcovic noted that in discussions held 24 hours prior with China’s Ministry of Commerce, both sides had agreed to establish a minimum price threshold. This trade strategy is designed to “maintain a fair market level in the EU” while creating a legal trade framework that is less restrictive than the current subsidy policies in place.
On October 29, 2024, the EU Commission is scheduled to release a review plan regarding subsidies for electric vehicles (draft version). This document, referred to as “the document,” will specify a basic subsidy level of 10% for electric vehicles exported from China, with a subsidy range of 17% to 35.3% for electric vehicles produced in China for export over a five-year period.
According to the document, the EU will impose the following subsidy rates for Chinese export products: 17% for passenger vehicles, 18.8% for light vehicles, and 35.3% for heavy-duty vehicles. Companies that do not cooperate will face a subsidy rate of 20.7%. After special review requests, certain companies may have a reduced subsidy rate of 7.8%.
Earlier reports from Yole Développement revealed that the market for electric vehicles is expected to grow significantly, with projections indicating a market scale reaching $8.59 billion, a 60% increase compared to previous years.
In an effort to promote electric vehicles, plans for 2030 include the introduction of 10 million domestically produced electric vehicles in the European market. Concurrently, funding for specific projects will reach $20 billion to support stable operations and address external uncertainties.
In addition, the plan includes allocating $10 billion for the deployment of infrastructure to enhance the efficiency of electric vehicle usage and to ensure a seamless transition towards electric mobility.
The latest report from Yole Développement highlights the competitive landscape of electric vehicles, showing that by 2024, the market for electric vehicles is expected to expand rapidly, with significant growth in sales and production.
As the electric vehicle sector evolves, the focus remains on maintaining competitiveness and fostering collaboration between regions to ensure a sustainable future for electric mobility.
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