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Published Date: June 2024 No of Pages: 105
The European EV market is experiencing robust growth, with sales reaching 3.2 million units and revenue of $146 billion in 2023. It’s projected to grow at a CAGR of 17%, reaching $415 billion by 2030. BEVs, priced at $38.3K, dominate over PHEVs ($68K). The EU’s plan to ban ICE vehicles by 2035 is driving BEV adoption. Government incentives, averaging $5,000 per buyer in major markets, support growth.
Charging infrastructure is expanding rapidly, with over 630,000 public points in 2023 and aims for 3 million by 2030. Volkswagen Group leads the market with a 21% share, followed by Stellantis (13%) and Tesla (12%). France’s 2024 eco-bonus changes and the EU’s AFIR initiative are expected to boost European EV competitiveness and accelerate adoption, with policies increasingly favouring BEVs to meet emission reduction targets.
The European electric vehicle (EV) market is at the forefront of the global transition to sustainable transportation, driven by ambitious climate goals, stringent emissions regulations, and strong governmental support. This dynamic sector encompasses a wide range of vehicles, primarily focusing on Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs), with a growing emphasis on fully electric models.
Europe’s commitment to reducing carbon emissions has led to aggressive targets, including the planned phase-out of internal combustion engine vehicles by 2035. This regulatory landscape, coupled with substantial financial incentives and expanding charging infrastructure, has created a robust ecosystem for EV growth across the continent.
Major European automakers, along with international competitors, are rapidly expanding their EV offerings, catering to diverse consumer needs from urban compact cars to luxury vehicles. As technology advances and economies of scale improve, EVs are becoming increasingly accessible to a broader range of consumers, marking a significant shift in Europe’s automotive landscape and setting the stage for a cleaner, more sustainable future in transportation.
Evolving Consumer Preferences:
Consumer concerns about range limitations might ease as battery technology improves and charging infrastructure expands. Environmental consciousness will likely continue to drive consumer preference towards EVs as a more sustainable transportation option. Demand for a wider variety of EV models.
Regulations & Incentives:
European governments are setting ambitious emission reduction targets and offering financial incentives for EV purchases. This policy push is a major driver for EV adoption. They are aiming to improve overall energy efficiency by at least 32.5% by 2030 Installation of fast charging stations of at least 150 kW every 60 km along the trans-European transport network (TEN-T).
Advancements in Battery Technology:
Solid-state batteries are anticipated to revolutionize the market once commercialized around 2025, these batteries offer higher energy density and improved safety compared to traditional lithium-ion batteries. Advanced Battery Management Systems (BMS) is improving the efficiency, safety, and lifespan of batteries through more sophisticated BMS is a critical focus
To know more about Global Electric Car Market, read our report
The Europe EV Market was valued at $XX Billion in 2023 and is projected to reach $XX Billion by 2030, reflecting a compound annual growth rate (CAGR) of XX% from 2024 to 2030.
Tesla Model Y ‘Juniper’
Audi Q4 e-tron
Volkswagen ID Buzz
Mercedes-Benz EQA
By 2030, it wants to sell 3.5 million battery electric vehicles worldwide.
Upcoming 95gm Co2/km fleet average limit, WLTP emission and fast charging network expansion across Europe will address range anxiety and boost EV uptake. Germany, where the tax on PHEV company cars is half that of conventional cars(valid for <40,000 Euros sticker price) after new rule in Sep 2019, and France now has a steep CO2-based taxation will boost PHEV sales.
Audi, PSA, BMW and Mercedes have a strong line-up of PHEVs in pipeline (more than 20 PHEVs in 2019-2022), to be manufactured post Q2-2020 to meet the 2021 95gm/km CO2 regulation. Post Covid, to improve the automobile market, various subsidies were introduced which boosted the overall EV sales in Europe allowing them to beat China and become the market leader for EV sales in 2020.
The sale of electric vehicles (EV) in Europe has overtaken that of diesel automobiles for the first time ever. More than a of vehicles sold in European markets, including the UK, were electric, while diesel automobiles fell to less. The number of battery electric vehicles sold in Western Europe reached an all-time high.
Europe has always had a number of prominent companies in the petrol and diesel automobile industries, but today’s revelation should spur EU automakers to improve their EV credentials even further. With incentives, infrastructure, and charging stations, there has been a clear focus on the demand side; nevertheless, far more attention should be paid to the supply side, notably ensuring that the EU is not reliant on China for energy.
Towards An All-Electric Future In Europe, Ford Makes Risking Steps. Ford today announced important steps towards an all-electric future in Europe, which will alter the company and enable it to launch a new generation of seven fully-connected, all-electric passenger cars and vans.
The company recently revealed that a new worldwide business unit called Ford Model e had been established. This organization is responsible for the design, manufacturing, and distribution of electric and connected vehicles. Today’s statement adds to that information. The future of Ford in Europe will be determined by these two business areas and Ford Pro, the division devoted to the company’s commercial vehicle industry.
They are excited to see how quickly things are changing in Europe and are pushing their entire sector to create vehicles that are more advanced, greener, and digital. Ford has created Ford Model e to enable them to move at the speed of a start-up to build electric vehicles that delight and offer connected services exclusive to Ford, are built with Ford-grade engineering, and that are safe.
Ford is all-in and moving quickly to meet the demand in Europe and around the world.Ford anticipates that its yearly sales of electric vehicles in Europe will surpass 600,000 units thanks to its expanded lineup of electric passenger and commercial vehicle models.
With the addition of a second electric vehicle to the Cologne manufacturing lineup, Ford will start producing an all-new electric passenger vehicle that is a medium-sized crossover. Additionally, a Craiova, Romania-made electric version of Ford’s best-selling passenger vehicle in Europe, the Ford Puma, will be offered.
In September 2021, the Tesla Model 3 was the top selling model with 24,952 registrations. Next to that, Tesla Model Y recorded the most number of sales 9496 in September 2021.
The Volkswagen ID 3 was the second most sold car, recording over 53,000 registrations so far. The Renault Zoe has also reached many customers and noted over 45,000 bookings. At last, the Volkswagen ID 4 has about 38,000 registrations in the first nine months of 2021.
€ (billion)
Renault Zoe was the market leader followed by Tesla Model 3 and Volkswagen I.D 3. 68% of the market share was held by 7 OEMs in Europe.
The access restriction by major European cities like London, Madrid to allow only plug-in vehicles to ply in city centers is a major growth driver for electric van market.
Most of the electric vans will be available with two battery sizes (50-55/70-80 kWh) and are expected to deliver range of 200 and 300 kilometers respectively as per the new WLTP cycle.
In UK, which accounts for 15% of Europe van market, sales of electric vans grew to ~3,200 units in 2019, just 1% of the total light van market. The top selling electric vans were Nissan NV200, Renault Kangoo (including Kangoo Maxi), Peugeot Partner and LDV V80.
By 2024, Ford wants to debut three new electric passenger vehicles in Europe, with the goal of selling over 600,000 electric vehicles in the region by 2026. Ford will start producing an all-new electric passenger vehicle in Cologne, a medium-sized crossover, with a second electric vehicle joining the Cologne production line-up in 2024.
Furthermore, starting in 2024, Ford’s best-selling passenger vehicle in Europe, the Ford Puma, will be available in an electric version built in Craiova, Romania. Ford also confirmed that the first mass-market all-electric passenger vehicle to emerge from the Ford Cologne Electrification Centre will be a five-seat, medium-sized crossover.
Toyota, a Japanese automaker, has outlined a more aggressive electrification strategy for Europe that will see the bZ4X joined by five other all-electric models. With these BEV options, Toyota hopes to meet its sales target and become carbon neutral faster.
The Toyota bZ4X, the first in the automaker’s new “bZ” line of BEVs, is a fully electric vehicle. The bZ4X is still back on the market, and a new bZ concept that made its debut at the LA Auto Show has since joined it. Toyota teased five new “bZ” models, including a smaller car/SUV next year, as part of its much more proactive EV strategy (at least for Europe).
Hyundai, a South Korean automaker, is getting closer to entering the lower end of the EV market and may soon offer two small, compact EVs. Hyundai has always needed a cost-effective compact EV to compete with similar vehicles planned by European heavyweights like Volkswagen Group, which is preparing to introduce small, affordable EVs through its Cupra, Skoda, and Volkswagen brands.
This is true even today. In addition to the current Ioniq 5 compact crossover and the recently unveiled Ioniq 6 sedan, which is scheduled to arrive in Europe by the end of the year, Hyundai is aiming to launch an additional 11 fully electric vehicles in Europe.
The European Market is divided across multiple OEMs and have a healthy competition. Tesla sells only BEVs whereas BMW`s lineup is completey comprised of PHEVs except BMW i3 and Mini Electric.
Renault- Nissan- Mitsubishi alliance have 3 best-sellers and account for 15% market share. Tesla Model 3 was one of the most popular BEV in 2019 and 2020.
VW brand which has 12% market share of new car sales in Europe is so far lagging behind in EV development, but it has received good response to its upcoming ID3 all-electric hatchback. New models based on the MEB platform will be hitting the market and it’ll include vans, crossovers etc.
Volvo had a 25% of their sales under electrified and plans to increase the percentage in the coming years. PSA group also launched multiple plugged in vehicles and also saw a great response from the market. Due to the increased sales in 2020, OEMs are expecting better sales in the coming years and the government supports electrification through EuroNCAP.
Unlike China, where more than 400 EV startups are functional due to conducive government incentives and policies( till H2 2019), Europe is home to less than 5 EV startups.
