I don't know what the economist is saying because paywall, but the proud western * auto industry with hundreds of years of tradition combined should work on reducing prices instead of on super premium electric cars.
* and Japanese. What are you thinking with those PHEV Rav prices, Toyota?
It depends on the company. VW has a serious problem because they are selling a mass market product where they need to compete with the Chinese products. And while they make fine cars their infotainment system that now controls everything is still terrible (laggy touchscreens, complicated UI and so on) and the cars are expensive and their EVs are slow. Unlike many here I think touchscreens in a car are fine if done well (like Tesla), but getting it right is extremely important.
On the other hand, BMW/Mercedes for example sell much based on brand recognition and to a market segment willing to pay a lot. This is unlikely to change soon, so their strategy is reasonable.
> Unlike many here I think touchscreens in a car are fine if done well (like Tesla)
Ouch. Yes you're a minority. I will never buy a Tesla because of the touch screen only interface. I don't want to die adjusting the a/c on the touch screen.
* and Japanese. What are you thinking with those PHEV Rav prices, Toyota?