Andy Palmer: Carmakers Choosing Hybrids Over Electric Will Be Left Behind by Chinese Companies

Andy Palmer, known as the 'EV Godfather,' warned car manufacturers planning to abandon electric vehicles in favor of hybrid cars.

Palmer, a former CEO of Aston Martin and a senior executive at Nissan, stated in an interview with Business Insider that delaying the shift to electric vehicles in favor of hybrid cars is a 'foolish path,' warning that such companies risk being left behind by Chinese electric vehicle manufacturers.

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Palmer earned the title 'EV Godfather' during his time as COO at Nissan, where he led the development of the Nissan Leaf electric car. Launched in 2010, the Leaf has sold over 500,000 units worldwide, making it the first mass-produced electric vehicle.

He said: 'Hybrid cars are a dead end. They are a transition strategy, and the longer you stay in this transition phase, the slower you enter the new era of electric vehicles. If you delay the transition to electric vehicles through hybrids, you will be at a disadvantage for a longer period.'

Palmer believes that the success of China's electric vehicle industry is due to China's long-term industrial policy. Since 2009, the Chinese government has invested at least $230 billion in subsidies for electric vehicle manufacturers. He served on the board of Dongfeng Motor Corporation and witnessed the Chinese government's active promotion in the new energy vehicle sector. He emphasized that China's success lies in its clear industrial strategy, which the West has long lacked.

He stated that Western tariffs on China would only weaken the competitiveness of Western companies. Western car manufacturers should prepare for a 'survival of the fittest' with Chinese car manufacturers, especially in Europe, where brands like BYD and Xpeng are rapidly expanding. 'If Chinese manufacturers can succeed in the European market, they will be invincible in the world.'

Although Toyota's early hybrid strategy was successful, this strategy has exposed problems as the Chinese market quickly shifts to electric vehicles. 'Toyota has led the Japanese automotive industry into a dead end, from which it is difficult to recover,' he analyzed.

At the same time, Nissan failed to make good use of its electric vehicle technology and market leadership, ultimately leading to its current predicament. 'Nissan's management issues have led to today's situation, with a very weak electric vehicle product lineup.'

He believes that consumer hesitation towards electric vehicles mainly stems from their high prices. He suggests that the price of electric vehicles must be on par with traditional fuel vehicles, which requires offering smaller batteries and lower-priced models. Governments should increase support for charging network construction to alleviate 'range anxiety.' In addition, the West can learn from China's industrial strategy, especially in the field of batteries, where China excels. 'If the West wants to catch up, it should follow China's approach.'

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