Europe's Auto Industry Falls 3 Years Behind China as EV Transition Window Narrows

On March 25, Transport & Environment (T&E), a European federation, released its report "State of Mobility in Europe 2026," warning that the window for Europe's automotive industry to transition toward electrification is rapidly closing amid intensifying global competition in clean technologies and growing pressures over energy security. The report noted that Europe still lags behind China by approximately three years in electric vehicle (EV) sales, reflecting a temporary slowdown in both policy momentum and industrial development, while China has already established a relatively complete EV supply chain advantage. Nevertheless, Europe retains a solid industrial foundation: around 70% of EVs sold in the EU in 2023 were manufactured locally, and the battery sector is currently expanding, attracting increased investment from European, Chinese, and South Korean companies. Additionally, Europe remains heavily dependent on imported oil, with import expenditures exceeding €220 billion in 2025; if oil prices remain at $100 per barrel, this figure could surpass €300 billion in 2026.