The European auto industry is sounding the alarm as the market share for battery electric vehicles (BEVs) continues to shrink. The Association of European Automobile Manufacturers (ACEA) is calling on EU institutions to implement urgent measures to counteract this troubling trend before new CO2 targets for cars and vans come into effect in 2025. Additionally, ACEA urges the European Commission to advance the reviews of CO2 regulations for light-duty and heavy-duty vehicles, currently set for 2026 and 2027, to 2025.

Call for immediate action

The European auto industry has been a strong supporter of the Paris Agreement and the EU's 2050 decarbonization goals. Significant investments have been made in electrification, aiming to bring zero-emission vehicles to market. However, ACEA highlights that while vehicle technology and availability are not the issue, other critical components necessary for this systemic shift are lacking. The Draghi report confirms that the EU’s competitiveness is deteriorating rapidly.

Market trends and declines

Recent data from ACEA indicates a continued decline in the electric car market. In August 2024, battery-electric car registrations fell by 43.9% to 92,627 units, a significant drop from 165,204 units in the same month last year. This decrease has led to a market share of 14.4%, down from 21% the previous year. The largest markets for BEVs, Germany and France, experienced declines of 68.8% and 33.1%, respectively.

Source: ACEA

Plug-in hybrid vehicles also saw a notable decrease of 22.3% in registrations, with their market share dropping to 7.1%. In contrast, hybrid-electric vehicles were the only segment to experience growth, with registrations increasing by 6.6% to 201,552 units, and their market share rising to 31.3%.

ACEA's Board expresses concern that the current conditions do not support the necessary boost in the production and adoption of zero-emission vehicles. Key issues include insufficient charging and hydrogen refilling infrastructure, a competitive manufacturing environment, and a secure supply of raw materials. Additionally, economic growth, consumer acceptance, and infrastructure trust are not progressing as needed.

The urgent need for review

With the threat of multi-billion-euro fines, production cuts, and job losses looming, the industry cannot afford to wait until 2026 and 2027 for CO2 regulation reviews. ACEA calls for immediate and meaningful action to reverse the downward trend, restore industry competitiveness, and reduce strategic vulnerabilities. For heavy-duty vehicles, an earlier review is crucial to ensure infrastructure for trucks and buses is adequately scaled up.

Future steps

ACEA stands ready to discuss a short-term relief package for the 2025 CO2 targets and advocate for a fast-tracked, comprehensive review of CO2 regulations for both cars and trucks. This approach aims to put the zero-emission transition back on track and secure Europe’s industrial future.

The European auto industry faces a critical juncture as it navigates declining EV demand and strives to meet ambitious climate targets. Immediate action is essential to ensure that the transition to zero-emission vehicles remains viable and successful.