Geneva. The increase in EV adoption is supported by the EU’s target to reduce emissions from cars by 50 per cent from 2021 levels for the period 2030-2035. While the US government has provided subsidies for EVs and charging stations. The International Monetary Fund has said this on global economic growth forecasts. The IMF said the growing trend of adoption of electric vehicles represents a fundamental change in the global automotive industry. This will have far reaching consequences. The move to EVs has grown in recent years and is seen as an important way to help countries achieve climate goals.
The IMF said that in 2022, transportation will account for 36 percent of greenhouse gas emissions in the US, 21 percent in the EU and 8 percent in China. The global automotive industry is known for high wages, strong profits, large export markets and high levels of technology, the IMF said. This scenario will change again with the rapid move towards EVs. Especially if China maintains its current lead in production and exports over US and European rivals. The IMF said that under realistic EV market penetration scenarios, Europe’s GDP would decline by about 0.3 percent in the medium term.
America is strict on Chinese EV
Both the US and the EU have imposed tariffs on Chinese-made EVs to counter unfair subsidies given by Beijing to Chinese manufacturers. Last month, the administration of US President Joe Biden imposed 100 percent duty on Chinese EVs. While earlier this month, EU member states supported import duties of up to 45 percent on Chinese-made EVs. Chinese EV makers have so far priced their vehicles lower than their rivals, which is a significant advantage. Because EVs are currently more expensive than gasoline alternatives and demand for EVs is weakening globally. The French government said earlier this month it would reduce its support for EV buyers, like Germany, which scrapped its subsidy scheme late last year.