Electrification pathways for passenger cars: A comparative analysis of China and Europe

Abstract

China and Europe have made significant progress in the electrification of mobility, but they differ substantially in their policy approaches and institutional frameworks. This paper presents a comparative analysis of their electrification pathways, focusing on the motivations, policy strategies, and challenges associated with scaling up electric-vehicle adoption. The study aims to: (i) examine the policy measures implemented in each region; (ii) assess outcomes in terms of market growth, infrastructure development, and industrial competitiveness; and (iii) identify key similarities and differences while deriving lessons to support transport-sector decarbonization. The comparison of battery electric vehicles (BEVs) and comparable diesel vehicles shows substantial regional differences in economic competitiveness. Based on Total Cost of Ownership analysis, BEVs are approximately 17% cheaper than diesel vehicles in China, while diesel vehicles remain about 25% cheaper than BEVs in Europe, reflecting differences in policy, market, energy, and industrial conditions. China's state-led approach has supported rapid market expansion, cost reductions, and industrial competitiveness, with local governments implementing targeted measures to promote battery-electric-vehicle adoption. In contrast, Europe relies more heavily on cooperation between public and private stakeholders, emphasizing lifecycle sustainability and cross-border infrastructure development. However, Europe's dependence on imported battery materials creates vulnerabilities within its supply chain.