this post was submitted on 26 Aug 2024
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That'll help prices remain competitive....Right?
It will help keep prices competitive in the long term. Chinese EV makers aren't competing in a free market as they are heavily subsidized by the government. It's no different from what Silicon Valley VCs do, pump loads of capital into a new industry so that it's difficult for any competitors to emerge. Once a company has a monopoly on a market innovation suffers, products stagnate or actively get worse, prices increase with a lack of competition, and the consumer suffers. In the case of EVs, there is the added issue of manufacturing capacity which is important for security. While I would love a cheap new EV now, I would prefer for my children to have sustainable cheap EVs in the future.
So what is stopping canada from subsidizing our own cheap EVs?
Oil companies and the ICE manufacturers that rely on them.
Changing production lines to EVs is expensive, and they want profits now. Not later. Line must go UP