The European market is an essential testing ground for low-cost EVs, and automakers can build on their experience there once they expand low-cost EVs to other geographies. The EU's aggressive goals for mitigating the effects of climate change and consumers' acceptance of EVs mean that in the near-term, the continent is the best environment for automakers to test consumer reception to low-cost EVs.
These companies will eventually need to broaden their efforts beyond Europe if they hope to maximize EV sales. Once they do so, the results of early trials in Europe could provide a roadmap for how to position EVs for budget-minded consumers in other geographies.1. Sign up for the Transportation & Logistics Briefing to get it delivered to your inbox 4x a week.