Europe's EV Transition Window Narrowing, Experts Warn It Lags China by ~3 Years

On the 25th, Transport & Environment (T&E), a European federation for transport and environment, released its "State of Mobility in Europe 2026" report, warning that Europe’s window of opportunity to transition its automotive industry toward electrification is rapidly narrowing amid intensifying global competition in clean technologies and growing pressure over energy security. The report states that Europe still lags China by approximately three years in electric vehicle (EV) sales, primarily due to a slowdown in policy momentum and temporary setbacks in industrial development. In contrast, China has already established a relatively complete EV supply chain. Nevertheless, Europe retains a strong manufacturing base: around 70% of EVs sold in the EU in 2023 were produced locally, and its battery industry is expanding rapidly, attracting increased investment from Chinese, South Korean, and domestic companies. The report also cautions that Europe remains heavily dependent on oil imports, with expenditures exceeding €220 billion in 2025. If oil prices remain at $100 per barrel, this figure is projected to surpass €300 billion in 2026.