Automakers in Europe are making progress towards meeting climate targets set by the European Union, thanks to accelerating electric vehicle (EV) sales, although they face many accompanying challenges.
Although some automakers are expressing concern about the slow adoption of electric vehicles and are calling for a delay in CO2 reduction targets, T&E estimates that EVs will play a key role in reducing emissions. Sales growth will be boosted by the introduction of seven new, affordable models of electric vehicles priced below 25,000 euros, which will be available between 2024 and 2025.
That said, some manufacturers will continue to rely on hybrids to fill the remaining emissions gap. Stellantis and Volkswagen Group will use hybrids for 33 percent and 30 percent of their emissions reduction goals, while Mercedes-Benz and Renault will use hybrids for 17 percent and 15 percent of the required reduction. BMW plans to rely on plug-in hybrids to achieve an 18 percent reduction in emissions.
T&E points out that if car manufacturers turn more to hybrids, the share of electric vehicles in the market could drop to 20 percent. Some manufacturers are considering partnerships with companies like Tesla and Volvo to help them achieve their goals.
In addition to sales of electric vehicles, differences have been observed between the private and corporate sectors in terms of EV adoption. While 13.8 percent of all new cars registered in the private sector are EVs, that percentage is somewhat lower in the corporate sector, amounting to 12.4 percent. Given that companies register 60 percent of all new cars in the EU, this backlog has a significant impact.
The biggest challenges in the adoption of electric vehicles in the corporate sector are observed in the largest European markets such as Germany, France, Italy and Spain. In these countries, companies reduced the purchase of electric cars in the first half of 2024, while the private sector recorded growth, despite all the incentives and subsidies available to companies.
Despite this, the European Union remains committed to climate goals, which is confirmed by emphasizing that the goal of zero car emissions by 2035 will remain in force. The German government, despite pressure from the car industry, has rejected a proposal to relax the 2025 targets, confirming the EU’s commitment to climate ambitions, according to T&E.
According to the latest Transport & Environment (T&E) analysis, electric vehicles are expected to make up between 20 and 24 percent of all new cars by 2025.
Energy portal
Source: energetskiportal.rs
