The European Automobile Manufacturers’ Association (ACEA) has raised fresh concerns over the EU electric vehicle (EV) market as new data from S&P Global reveals a worsening outlook for battery-electric vehicle (BEV) adoption. Between the first and second halves of 2024, market expectations have changed dramatically, leading to a downward revision in projected BEV market share for 2025. Forecasts now predict BEVs will hold only 21% of the market by 2025, a significant decrease from the 27% projected earlier this year, raising alarms regarding EU compliance with stringent 2025 CO? emission targets.

This downward revision has underscored the urgent need for policy intervention, with concerns mounting over the potential consequences of failing to meet climate goals. Martin Kupka, the Czech Transport Minister, highlighted the need for a dedicated automotive industrial action plan, cautioning that the EU risks lagging behind global competitors like the United States and China. “Without a targeted automotive industrial action plan, we risk falling behind the US and China. The reality check shows that the EU needs to have a more flexible system in place for auto manufacturers to reach the ambitious CO? reduction targets,” he stated. Kupka also emphasized the need to channel industry profits into sustainable innovation rather than penalties.

The stagnating EV market, according to ACEA, could lead to increased compliance costs for EU manufacturers, who might need to pool credits with non-EU automakers, funneling resources away from European industries. Sigrid de Vries, ACEA Director General, expressed grave concerns over these developments: “The looming crisis necessitates urgent action. All indicators point to a stagnating EU electric vehicle market at a time when acceleration is needed. The disproportionate compliance costs EU manufacturers face could jeopardize the entire road transport decarbonisation strategy.”

The ACEA has long advocated for EU policymakers to address the steep compliance costs stemming from ambitious 2025 CO? targets, which are compounded by insufficient charging infrastructure and limited market incentives for EV adoption. The ACEA has called for a comprehensive review of CO? standards for both light- and heavy-duty vehicles and has urged immediate cost relief measures to safeguard the competitiveness of the EU’s automotive sector.

In light of these recent findings, ACEA’s position remains firm: without immediate policy adjustments, the EU risks compromising not only its environmental goals but also the viability of its automotive industry.