NEW YORK, September 6. /TASS/. European automakers risk losing to American and Chinese competitors in the global race for the future of the automotive industry due to a lag in the production of electric vehicles, the Bloomberg agency wrote.

According to the agency’s data, European automakers, including Volkswagen and Volvo, were forced to revise their plans to increase production and then completely switch to electric vehicles due to a drop in demand for electric cars produced by these companies.

The agency sees two reasons for the setbacks. Firstly, European companies were unable to design affordable models of electric vehicles to compete with Tesla and Chinese manufacturers, and even the electric version of the Fiat 500, traditionally cheap for the European market, costs about 35,000 euros, which is twice as expensive as the same car with an internal combustion engine. Secondly, the reduction of government support programs has further undermined buyers' interest in European electric cars.

The agency quotes Ferdinand Dudenhoffer, director of the CAR-Center Automotive Research in Bochum, as saying that European automakers are "losing cost advantages ever faster."

"The effect will be that China will continue to expand its natural competitive advantages in EVs and the cost structures in Europe will continue to fall behind," Dudenhoffer said.