In the first half of 2024, electric vehicle (EV) registrations in Europe have experienced a significant slowdown, according to data from the European Automobile Manufacturers’ Association (ACEA).
A Critical Issue
The latest update reveals that EV registrations in the EU have dropped to 12.5%, a decrease of one percentage point from the same period last year and half a point compared to the end of 2023, according to El Economista.
The decline poses a critical issue for meeting emission targets set by the EU, which requires electric vehicles to make up 22% of new car sales by 2025. The automotive industry acknowledges that achieving this target is nearly impossible under current conditions.
Luca de Meo, ACEA President and CEO of Renault Group, estimates that failure to boost EV sales could result in fines amounting to €15 billion. Reducing the production of combustion engine vehicles is increasingly seen as a potential solution to avoid these penalties.
Scandinavia Lead in Registrations
While the transition to electric mobility in Europe progresses slowly, China has accelerated its efforts, leading in both advanced technology and competitive pricing. Several companies now doubt the feasibility of reaching the 100% electric vehicle sales target set for 2035 by the EU.
European countries show varying degrees of progress. Norway, Denmark, and Sweden lead the charge in EV registrations, with Norway achieving an impressive 85.6% of new car sales in 2024. Conversely, countries like Croatia and Spain lag significantly, with Spain recording only 4.7% EV registrations.
The slow adoption of EVs in Europe is exacerbated by inadequate incentives and support measures. The Spanish automotive industry, represented by Anfac, highlights that current subsidies, like the Moves III plan, may not be sufficient to spur widespread adoption. There is a call for more stable and inclusive financial incentives to support both individual and business buyers.
In contrast, global EV sales are led by Tesla, with notable performances by Chinese manufacturers Nio and BYD. European manufacturers are struggling to keep pace, risking further erosion of their competitive edge in the global market.
