News & Insights | Sustainability | Textile Industry

Electric vehicles: A Rebound for the Automobile Sector

Published: September 13, 2024
Author: TEXTILE VALUE CHAIN

The European push for electric vehicles is encountering opposition, which is seriously upsetting the automobile industry. An industry-wide crisis has resulted from the market’s reluctance to adopt the change, despite robust governmental assistance.

Major Volkswagen Group player Audi is currently dealing with employee dissatisfaction. Because of the decreasing sales of the electric models they manufacture, workers at the Brussels facility are protesting, fearing plant closures and job losses.
At the heart of this crisis is the Brussels facility, which has switched from manufacturing combustion engines to electric cars like the Audi A1.

This dissatisfaction is a sign of more significant problems facing the electric vehicle (EV) industry. High production costs are discouraging buyers, particularly of electric sport utility vehicles. In the meantime, Chinese producers are creating more affordable and competitive EVs thanks to significant government subsidies.

Europe’s car industry is suffering from a lack of comparable investment. European businesses find it difficult to manage this significant shift in the absence of the financial assistance that is evident in China. Growing dissatisfaction, stagnant advancement, and an unclear future await European electric cars are the outcomes.

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