Former Nissan CEO Andy Palmer warns that automakers delaying electric vehicle (EV) adoption in favor of hybrids risk falling behind Chinese companies, which have taken the lead in the electric car race. Palmer, known as the “godfather of EVs,” attributes China’s success to its long-running industrial strategy, including substantial subsidies and a focus on software development.
Palmer believes that automakers like Toyota, Honda, and his former employer Nissan have made strategic mistakes by prioritizing hybrids over EVs. He argues that this approach has left these companies vulnerable to competition from Chinese brands like BYD and Xpeng, which are expanding rapidly abroad.
The former Aston Martin CEO advises Western automakers to adopt a more proactive strategy to catch up with China’s EV industry. This includes offering cheaper vehicles with smaller batteries, incentivizing the rollout of charging networks, and learning from China’s approach to industrial strategy, particularly in battery development.
Palmer notes that tariffs imposed on Chinese imports will only harm Western companies’ competitiveness. Instead, he advocates for a “survival of the fittest” battle between Chinese and Western automakers, particularly in Europe, where Chinese brands have ambitious expansion plans.
Source: https://www.businessinsider.com/godfather-of-evs-explains-why-china-is-winning-ev-race-2024-12