Europe must slash EV costs to compete, says Czech Minister

PRAGUE: European carmakers must double down on slashing the cost of electric vehicles if they want to compete with the US and China, according to the Czech industry and trade minister.

Lukas Vlcek welcomed the European Union's move on Monday to give producers more time to meet stricter targets for carbon dioxide emissions or face hefty fines.

Manufacturers should use the three-year reprieve to invest in new technologies that will make their EVs better and cheaper, he said in a interview.

Low demand for EVs means that the European automotive industry is struggling to meet environmental goals at a time when imports from other parts of the world are rising.

The Czech Republic is the continent's fourth-biggest car producer and has been a major advocate of the EU regulatory respite.

"Through innovation, European carmakers must come up with more affordable EVs and hybrids," the 42-year-old Vlcek said at his office in Prague.

"If they don't, the three-year leeway won't help them, nor would a five-year one."

Europe now needs to focus on building more battery plants and charging stations, as well as investing in new technologies and research, according to Vlcek.

The EU should also consider imposing tariffs on Chinese EVs, he added.

China-made EVs cost around half the price of European or US-made vehicles on average, according to data compiled by consultancy Jato Dynamics.

"It's now up to carmakers to use the extra time and breathing room to invest in innovation and to become more competitive," Vlcek said.

"Governments can facilitate the transition by giving carmakers more time, and by countering a clearly unfair competition from China, possibly with the use of tariffs." - Krystof Chamonikolas, With assistance from William Wilkes.