The boss of Renault has called for a European war chest to fund electric vehicle subsidies and raw materials, as well as joint infrastructure planning, to see off fierce competition from China.

In an appeal to politicians ahead of European elections in June, Luca de Meo advocated a cross-border approach to developing and funding the industry, instead of simply setting deadlines for phasing out petrol and diesel cars. This would include pooling spending on consumer subsidies and creating “green” economic zones with tax breaks on hires at factories.

“When you set a 12-year deadline and say, in 12 years, there’ll be no more producing combustion-engine cars, and if you don’t, here’s a fine, and see you in 12 years at the end of the tunnel, that’s not a strategy,” De Meo said in an interview.