Mathilde Carlier
Research Expert covering transportation and logistics
Electric vehicles in Europe - statistics & facts
In August 2024, the European Commission disclosed the draft definitive findings of its anti-subsidy investigation into imports of battery-electric vehicles from China to the European Union. The European electric vehicle market grew steadily in the previous years, up 17 percent between 2022 and 2023, making it an attractive opportunity for Chinese automakers. While Chinese brands represented less than 10 percent of the EU’s fully electric vehicle market, over two in 10 BEVs sold in the European Union in 2023 were manufactured in China. In fact, around 5.5 percent of Tesla-branded cars sold in the EU that year were produced in China. Tesla was the best-selling make in Europe in 2023.
The duty taxes put in place as a result of this investigation have the potential to shape the European electric vehicle market, especially as battery-electric vehicles are forecast to remain the leading segment through 2029. As an August 2024 forecast projects, Europe will generate some 359.4 billion euros in electric vehicle revenue in 2029, representing a third of the global market. The market still faces various challenges to its growth, but EU intervention could help European EV manufacturers maintain or gain ground in their domestic market.
Each year, an increasing number of BEV models become available in Europe, but while the market is becoming more competitive and diverse, it must address consumers’ concerns regarding EV prices and worries regarding their access to the charging infrastructure. Chinese BEVs tend to have a lower reference price than those from non-Chinese carmakers, but the proposed duty rates on imports from China will impact the retail price of these vehicles to maintain the competitiveness of the European manufacturers that do not produce their cars in the Asian country.
The duty taxes put in place as a result of this investigation have the potential to shape the European electric vehicle market, especially as battery-electric vehicles are forecast to remain the leading segment through 2029. As an August 2024 forecast projects, Europe will generate some 359.4 billion euros in electric vehicle revenue in 2029, representing a third of the global market. The market still faces various challenges to its growth, but EU intervention could help European EV manufacturers maintain or gain ground in their domestic market.
Disruptions in the plug-in hybrid electric vehicle market
Quarterly PEV sales skyrocketed in the third quarter of 2020, boosted by a greater environmental consciousness due to the COVID-19 pandemic, and have remained elevated ever since. Spearheading the fleet electrification movement were Germany, which recorded over 699,900 electric vehicle sales in 2023, and Norway, with battery-electric and plug-in hybrid electric vehicles representing approximately 90.4 percent of its 2023 new vehicle sales. However, while increased BEV sales boost the electric vehicle market, plug-in hybrid electric vehicles are not necessarily recording the same success. PHEVs lost market shares in the EU in 2023. Germany, which ended subsidies for PHEVs at the end of 2022, recorded a sharp decline in PHEV sales, which led to a 19.4 percent slump in EV purchases. European consumers’ main concern regarding electric vehicles was their purchasing price, perceived as too high, which disincentivizes purchase for over half of shoppers who reported not wanting to buy an electric car. The end of governmental subsidies in selected markets could therefore contribute to dissuading consumers from investing in electric mobility.Competitiveness in an increasingly diverse market
Four of the five best-selling EV brands in Europe were German brands, which contrasts with the global market where Chinese brands have been gaining market shares. However, of these makes’ three parent-companies, the BMW Group was the only one for which electric vehicles represented over a third of its total European sales. Aside from Tesla, which exclusively sells BEVs, most automakers still relied on fossil-fuel car sales to determine their financial performance in the region.Each year, an increasing number of BEV models become available in Europe, but while the market is becoming more competitive and diverse, it must address consumers’ concerns regarding EV prices and worries regarding their access to the charging infrastructure. Chinese BEVs tend to have a lower reference price than those from non-Chinese carmakers, but the proposed duty rates on imports from China will impact the retail price of these vehicles to maintain the competitiveness of the European manufacturers that do not produce their cars in the Asian country.
