Daimler manager Martin Daum has proposed an annual increase of 10 cents per liter in gasoline prices to encourage a quicker transition to electric vehicles. He believes that instead of government purchase incentives, efforts should focus on expanding the charging infrastructure. Electric vehicle sales remain sluggish due to their high costs, making the proposed price hike potentially unpopular. Alternatives like a smaller surcharge could be considered, but any significant fuel price increase would disproportionately affect low-income earners and commuters amidst ongoing inflation.
Meanwhile, EU countries continue to subsidize combustion engine company cars, with the five largest EU states spending 42 billion euros annually. Critics, including Transport & Environment, argue these subsidies hinder the shift to electric vehicles, which has seen declining sales across Europe, except in the UK. The European Commission is tasked with developing proposals to phase out fossil fuel subsidies.
In a related issue, Mercedes' CEO has called for a delay in EU tariffs on Chinese electric cars to allow negotiation, amidst accusations of price manipulation by China. The complex interplay of these factors marks a challenging path for Europe's electric vehicle transition.
