European Market: EVs Reach 15% of New Vehicle Sales; Chinese BEVs Increase

Expansion of EV battery production, acceptance of e-fuel engine vehicles



  The EU and the UK have been advancing their electrification strategies with a target of achieving carbon neutrality in 2050, but recently, they are making some shifts in hastily-made policies. While the EU banned the sale of internal combustion engine (ICE) vehicles from 2035, it approved ICE vehicles that run on carbon-neutral e-fuels. The UK postponed the ban on the sale of ICE vehicles from 2030 to 2035.

  National governments are implementing various incentive measures to increase the use of electric vehicles (EVs). Although purchase subsidies for electrified vehicles are being reduced by focusing on zero-emissions vehicles, subsidies are granted for construction of EV and battery production plants and installation of charging infrastructure.

  One of many factors hindering EVs from spreading in the European Market is the updated Euro 7 emissions standards. The automotive industry is calling for revisions to the Euro 7 draft claiming that its environmental benefit is limited while it increases costs. In addition, the auto manufacturers are seeking a deferral of the introduction of the rules of origin for EU-UK trade. If these rules are introduced in 2024, tariffs will be imposed on imported EVs. Other concerns include the European Commission’s anti-subsidy investigation into China-built EVs imported to Europe.

  Sales of electrified vehicles (EVs, plug-in hybrid vehicles (PHVs), and hybrid vehicles (HVs)) in Europe for the period of January-August 2023 consisted of EVs growing by 53.6% year-over-year (y/y) to 1,285,000 units, PHVs increasing by 4.5% y/y to 629,000 units, and HVs growing by 27.9% y/y to 2,184,000 units. New vehicle sales for the same period totaled 8,517,000 units. EVs accounted for 15.1%, which is up by 2.2 percentage points compared to the period of January-August 2022.

  Automakers continue to launch various EV and PHV models in the European market in 2023. Especially Chinese manufacturers are making an intensified offensive, as not only leading automakers such as BYD and Great Wall Motor but also emerging NEV manufacturers including Human Horizons and XPeng Motors are releasing new EVs in Europe.

欧州の電動車販売台数の推移 Stellantis Jeep Avenger
Sales of EVs, PHVs, and HVs in Europe
(Source: Created by MarkLines based on ACEA's data)
Stellantis Jeep Avenger
(new subcompact electric SUV) (Source: Jeep)

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Electrification by 2030 - The OEMs’ Plans (Nov. 2022)
31st Aachen Colloquium Sustainable Mobility (Nov. 2022)
VW Group (Part 1): Annual production capacity of 3.5 million EVs by 2026 (Oct. 2022)
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Stellantis (Part 1): 75 BEV Models by 2030, Aiming for 5 million Annual BEV Sales (Jul. 2022)

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