Column: The road to an affordable, climate-friendly future
The European Union wants to be climate neutral by 2050. This is a very interesting and promising ambition, fastened in the plan Fit for 55: the intermediate CO2 reduction target is set at 55% by 2030, compared to the emission level of 1990.
The car industry plays an important role in this ambition. From 2035, in the EU, sales of passenger cars with a combustion engine is forbidden. As an interim target, by 2030 at least 60% of all new cars sold in the EU must be all-electric.
Critics say that ‘electric cars would be too expensive to implement these plans throughout the European Union’. It’s common thinking that an electric car with a lot of space, technology, comfort and a reassuring range seems to be something solely for the premium segment.
But very simply said: that is not true at all. At MG, we just prove every day that electric driving can indeed be affordable. It is our goal to disrupt the EV market in Europe with attractive, safe and high-quality EVs that meet all the needs of modern families and corporations. And above all, at a fair price. MG is already known as the first truly affordable electric car brand in Europe. And we just started, there’s much more to come.
The world is changing rapidly. Several studies, such as a recent one by BloombergNEF, show that battery-electric vehicles (BEVs) will be cheaper to produce than fossil fuel vehicles in five to six years’ time. This concerns both passenger cars and light commercial vehicles in all vehicle segments in Europe. Our prediction: sales of new combustion engine cars will fall anyway.
In the intervening years to the implementation of the EU-plan Fit for 55, the development and production costs of electric cars will fall even further. To illustrate: according to BloombergNEF, the production costs (per kWh) of EV batteries will have decreased by 58% in 2030 compared to 2020. In combination with all (tax) benefits that already apply in the EU countries and additional, meaningful, and sustainable incentives to further increase EV sales, retail pricing won’t be an issue anymore.
Much more important: the Fit for 55 plan contains plans for the much-needed expansion of the number of charging points in the EU. It’s absolutely necessary to hurry up, as I emphasized in a previous column. The plan also states that EU member states must have sufficient charging capacity available, depending on the number of electric cars. This means: the more electric cars, the more charging capacity must be made available. That’s important for encouraging new customers to embrace electric driving.
Whatever the future will bring us, we at MG are ready for it. We are focused on electrified cars only and committed to making electric mobility accessible to European drivers. We are already on the road to an affordable, climate-friendly future. In fact, we are ahead of Fit for 55!
– Matt Lei, CEO MG Motor Europe