Electric vehicle affordability remains a challenge for numerous Europeans, according to recent data.
The transition to electric vehicles (EVs) in Europe is underway, but progress varies across the continent. According to the latest ACEA data, electrically chargeable vehicles (ECVs) have a market share of 9% or less in more than half of EU member states.
The European auto industry has invested significantly in EV technology, with the highest ECV market shares (30% and over) found in just five Northern and Western European countries. However, the countries with the lowest ECV market share are mainly concentrated in Central and Eastern, and Southern Europe.
The affordability issues faced by European consumers are putting a brake on the transition to electric vehicles. The average net income in these countries is €13,000, significantly lower than the €32,000 net income threshold where the highest ECV market shares are found. Purchase incentives can help alleviate these affordability challenges, stimulating Europe's transition to a net-zero future.
The lack of enabling conditions, including access to charging infrastructure, exacerbates market share disparities across member states and regions in the EU. Fast-tracking the installation of electric vehicle charging points across the continent is a necessary measure. EU decision-makers are fostering excellent incentive programs for EVs by implementing CO2 fleet emission limits requiring manufacturers to reduce average vehicle emissions by 15% by 2025. This compels increased sales of emission-free vehicles.
Laws like the Building Electromobility Infrastructure Act (GEIG) promote charging infrastructure expansion to make EVs more practical. Financial subsidies and support for both private and commercial buyers are also being provided, thus unlocking Europe's significant electric car market potential.
It's important to note that ACEA's work focuses on ECVs, which include battery electric vehicles (BEVs) and plug-in-hybrid vehicles (PHEVs), but not fuel cell electric vehicles (FCEVs) powered by hydrogen.
Electrification of vehicles is the most efficient way to minimize road transport's carbon footprint, reduce pollutant emissions, and improve air quality. As Europe continues to work towards its net-zero goals, addressing the challenges in the EV market will be crucial to achieving these objectives.
For more information about ACEA's work on electric vehicles, visit their website.
