The Guardian view on Europe’s struggling EV industry: driving in the slow lane | Editorial

Insufficient investment and the withdrawal of subsidies and incentives are damaging a sector that is vital to the green transition

Earlier this year, a French experiment offered a startling glimpse of what progressive green policymaking can achieve. In an effort to boost demand, Emmanuel Macron's government introduced a social leasing scheme allowing less well-off commuters to payan affordable monthly rate for a new electric vehicle (EV). Within a month, demand boomed to the extent that the schemewas abruptly suspended. According to ministers, French carmakers couldn't keep up with the sudden surge of interest.

This autumn, companies such as Renault and Peugeotare facing a different kind of problem. Governments across the EU have withdrawn subsidies and incentives, and are failing to provide reassuring levels of investment in charging infrastructure and grid capacity. As a consequence, EV sales are badly off the pace in the journey to 2035 zero-emission targets. According to new data from the European Automobile Manufacturers' Association, August recorded the fourth consecutive monthly drop in sales. Overall, car sales are at their lowest for three years, with double-digit falls in France, Germany and Italy. Executives at Volkswagen, asymbol of Germany's industrial prowess, have declared an intention to close domestic factories for the first time in the company's history.