Electric cars are changing everything… what’s the real impact?

The IMF says the shift to electric vehicles will have far-reaching impacts. What do you all think? Are they talking just about jobs or the bigger picture?

Are they seriously blaming electric cars for Western automakers not being able to keep up with Chinese companies that are subsidized? I don’t see what EVs have to do with it. Wouldn’t it be happening even without electric cars?

Jo said:
@PixelPaladin
Maybe. But traditional engines (ICE) have been developed for so long that China just caught up. With batteries, they saw a chance to lead the way and went for it.

That’s true, but the bigger factor is oil. China wouldn’t invest billions in EVs if the alternative was importing oil from unstable regions.

@Skyler
Another big reason was their air pollution problems. Remember when the air was so bad that people had to carry around portable oxygen tanks?

@Skyler
It’s not just oil, though. The real concern for China is PM2.5 pollution. 2 million people die from air pollution every year there, which is why they’re pushing so hard for electrification.

Jo said:
@PixelPaladin
Maybe. But traditional engines (ICE) have been developed for so long that China just caught up. With batteries, they saw a chance to lead the way and went for it.

But when it comes to consumer-level gas engines, Europe, South Korea, and Japan still lead. China doesn’t really have an advantage here.

@Teagan
Just wait… electric cars will be cheaper than gas ones by 2026.

@PixelPaladin
China would probably subsidize gas cars too, but I think it’s easier to get EVs approved for export.

Joss said:
@PixelPaladin
China would probably subsidize gas cars too, but I think it’s easier to get EVs approved for export.

I doubt it. China benefits from other countries using less oil because it puts pressure on OPEC. Cheaper gas cars would do the opposite.

The powertrain is just one part of a car’s value. Electric ones are simpler, which is why it gave new companies an opening. But this doesn’t mean traditional automakers are behind—they’re not. The real change will be in the energy sector. Oil countries, like Russia and those in the Gulf, are going to feel this the hardest.

Solar panels, wind power, batteries, and electric cars are becoming affordable in Africa, Southeast Asia, the Middle East, and Latin America. You can buy from China, or if you want to spend more, from the US or EU.

@Teagan
The Middle East isn’t a great example since it’s full of oil-dependent countries. Europe would be a better example if their politicians weren’t so easily influenced by outside interests.

@Teagan
Those regions are small markets for cars in general. Maybe in 10-20 years they’ll matter more, but not now.

Axelle said:
@Teagan
Those regions are small markets for cars in general. Maybe in 10-20 years they’ll matter more, but not now.

EV sales are small in the US and Europe too.

The article didn’t really tell us anything new. Yes, there will be job losses as industries change. Did the IMF report mention anything else? I don’t think governments realize how big the shift to green energy is going to be. For example, Spain’s electricity use dropped this year, probably because a lot of people have solar panels now. Spain doesn’t have many electric cars yet. Imagine when everyone has solar panels, home batteries, and electric cars—what’s the point of a big power grid? This shift goes beyond the auto industry; the whole energy sector will have to adjust.

If Western countries hadn’t outsourced so much to China, they wouldn’t be in this situation where China leads in logistics and manufacturing. The West made their bed, now they have to lie in it.

Marlon said:
If Western countries hadn’t outsourced so much to China, they wouldn’t be in this situation where China leads in logistics and manufacturing. The West made their bed, now they have to lie in it.

Well said… can’t argue with that.

The change has already begun. Some countries are selling more electric cars than traditional ones. Jobs won’t disappear, but they’ll move to different companies. Those who fought against electric cars will lose out to those who embraced the future. We’ll see more partnerships like Stellantis-Leapmotor and VW-Rivian.