EVs May Hit 24% Market Share in EU by 2025, Reports T&E

Transport & Environment (T&E) reports that electric vehicles (EVs) could capture a 24% share of the European Union car market by 2025. This anticipated growth reflects increasing consumer demand for sustainable transportation options and the EU's ongoing efforts to promote cleaner mobility. The shift toward EVs underscores a broader commitment to reducing emissions and addressing climate change within the automotive sector.

Battery-electric vehicles (BEVs) in the European Union are projected to achieve a market share of 20% to 24% by 2025, primarily due to lower prices, according to the campaign group Transport & Environment (T&E). Recent months have seen a slowdown in EV sales, reaching a 14% market share in the first half of the year, partly due to varying green incentive policies across the EU and significant tariffs on Chinese cars aimed at protecting local industry.

In September, Germany, the EU's largest EV market, introduced new incentives to accelerate the green transition. T&E, which previously forecast a 21% share for the upcoming year, now expects sales to increase, factoring in the launch of seven new fully electric models priced under €25,000 ($27,835) expected in 2024 and 2025. These models could represent 10% to 15% of the BEV market next year.

BEVs are anticipated to account for about 60% of the carbon dioxide (CO2) reductions required by carmakers to meet EU emissions targets next year, while hybrid vehicles may contribute 20%. Facing declining EV demand and tougher competition from more affordable Chinese models, European manufacturers have called on EU lawmakers to activate a crisis clause that would delay their CO2 targets by two years.

T&E urges lawmakers to avoid weakening or postponing the 2025-2030 targets, advocating for strong national policies to support electrification. The current advantage held by Chinese EV manufacturers demonstrates that prolonged protection of underperforming EU automakers will diminish their competitiveness, T&E noted. Major automakers like Stellantis, Toyota, Renault, and Mercedes-Benz have adjusted their electrification targets downward.

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Source: Reuters‍