The European EV market has been in crisis for a long time, and European manufacturers are finding it increasingly difficult to cope with the Chinese, which produce electric cars at a speed unattainable for any European brand. However, despite the difficulties, the European market is showing signs of recovery.

A few years ago, European manufacturers set the goal of becoming completely CO2 neutral by 2030, but that goal proved to be unattainable over time, primarily because of the supply chain, which was an unsolvable problem for most companies. In the meantime, Chinese auto makers developed electric cars at a speed that was not expected, or others overestimated their capabilities, so their cheap EVs, supported by government subsidies, began to arrive in large numbers on the European market.

European manufacturers began to sink and their cars were no longer competitive with Chinese ones. They began to look for a solution to the growing crisis and to demand protection from their governments. In 2023, the EU launched an investigation into the privileged position of electric vehicles produced in China due to subsidies, which after a year resulted in the introduction of additional customs duties.

Companies have set a new goal of complete CO2 neutrality by 2035, but many countries are not showing the necessary support to make this transition happen. At the end of 2023, Germany ended its plan to help customers and abolished subsidies. However, the Germans are aware that they must return to eco-bonuses if they want to increase sales. Also this month, France announced plans to reduce government support for the purchase of electric cars.

In September, almost 300,000 EVs were sold in Europe, which is an increase of 4.2% compared to last year. Great Britain saw the highest growth of 24 percent, while the best-selling models were the Tesla Model 3 and Model Y.

Big challenges await Europe in the coming years, and the first of them is the Euro 7 standard. Expectations have been lowered, so analysts hope that in 2025, 3.78 million EVs will be sold on the European market, and by the end of the decade, that number should reach 9.78 million.

Source: Reuters