US Electric Vehicle Production Lags Significantly Behind China and Europe

ICCT Report... US Share in Global Production Last Year 18%
Europe and China Account for 25% and 44% Respectively

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] The production volume of electric vehicles (EVs) in the United States has fallen behind that of China and Europe, with the gap recently widening further.

According to a report released on the 29th (local time) by the International Council on Clean Transportation (ICCT), the share of the United States in the cumulative global EV production since 2010 decreased from 20% in 2017 to 18% last year.

During the same period, Europe’s share rose from 23% to 25%, while China’s increased from 36% to 44%.

ICCT warned that by 2025, the share of EV production in the United States is expected to account for only 10% of the global total, potentially widening the production gap with Europe and China, which are projected to hold 70% combined.

ICCT also forecasted that amid the rise of the European and Chinese EV industries, Germany’s Volkswagen is expected to become the world’s largest EV manufacturer by 2025. Volkswagen currently has no EV production facilities in the United States and operates factories only in Europe and China.

The weaker EV production capacity in the United States compared to overseas is analyzed to be due to a lack of policy interest from the U.S. government.

The ICCT report stated, "Europe is strengthening emissions regulations, prompting automakers to focus on EV production to comply," and "China is also tightening emissions controls and increasing support on all fronts of demand and supply, including expanding EV purchase subsidies."

In contrast, during former President Donald Trump’s administration, the relaxation of fuel efficiency and environmental standards acted as a factor limiting the expansion of EV demand in the U.S. Additionally, the gradual reduction of EV purchase subsidies for domestic manufacturers such as Tesla and GM also had an impact.

Another factor cited is that EV demand is greater overseas than in the U.S. It is analyzed that U.S. automakers have begun establishing production bases directly in foreign countries with high EV demand to reduce export costs.

Among the 44 automobile manufacturing plants in the United States, ICCT reported that only two plants produced EVs exclusively as of last year.

The EV demand gap is also reflected in the share of EV sales by country. Last year, EVs accounted for only 2.3% of all vehicles sold in the United States, a figure that is less than half of Europe’s 10% and China’s 6%.

This content was produced with the assistance of AI translation services.