Battery-electric vehicle (BEV) sales in the European Union are projected to secure a market share of 20-24 percent by 2025, driven by lower prices, according to campaign group Transport & Environment (T&E).
While BEV sales have slowed in recent months, reaching only 14 percent of the market in the first half of 2024, T&E expects a rebound due to the launch of more affordable models.
Seven new fully-electric models priced under €25,000 ($27,835) are expected to enter the market by 2024 and 2025, potentially capturing 10-15 percent of next year’s BEV market. These models are seen as crucial in driving wider adoption of electric vehicles.
BEVs are anticipated to contribute 60 percent of the carbon dioxide (CO2) reductions that automakers need to meet 2024 EU emissions targets, with hybrid vehicles providing an additional 20 percent of the reductions, T&E said. However, concerns remain as European carmakers face increased competition from cheaper Chinese EVs, compounded by the European Union’s imposition of tariffs on these imports.
Some automakers, including Stellantis, Toyota, Renault, and Mercedes-Benz, have adjusted their electrification targets downward. In response, industry leaders have asked the EU to delay CO2 emission targets by two years, citing slowing demand and growing competition. However, T&E urges the EU to resist weakening or delaying its 2025-2030 targets, warning that protecting underperforming European manufacturers will reduce their global competitiveness.