Global EV Market Continues to Grow, but Europe Faces Decline—How is the EU Responding?

車未來 2025-03-06

In recent years, the global electric vehicle (EV) market has been experiencing steady growth. However, the European market is facing significant challenges. According to data from the European Automobile Manufacturers’ Association (ACEA), EV market share in Europe declined by one percentage point to 13.6% in 2024. Although it rebounded slightly to 15% in January 2025, the growth rate remains limited. Despite the continuous release of new EV models by European automakers, consumer adoption has not met expectations. How is the EU addressing these challenges?

Several critical factors contribute to the slowdown in Europe’s EV market, including inadequate charging infrastructure, unstable government subsidy policies, and higher EV prices compared to internal combustion engine vehicles. Regarding charging infrastructure, statistics show that nearly 60% of charging stations are concentrated in just three major European countries. This imbalance discourages potential consumers in other regions due to the lack of charging convenience. Additionally, the abrupt termination of Germany’s EV subsidy program has further dampened demand in this key market.

Recognizing that corporate fleets account for approximately 60% of all new car registrations in the EU, the European Commission has been actively promoting policies to accelerate the transition from fuel-powered company cars to EVs. The EU is planning to eliminate tax incentives for gasoline- and diesel-powered corporate vehicles while encouraging companies to prioritize the adoption of zero-emission vehicles. Furthermore, the EU intends to introduce legislation by the end of the year aimed at decarbonizing corporate fleets and implementing additional measures to stimulate market demand for EVs.

This month, the European Commission issued policy recommendations to national, regional, and municipal authorities, outlining strategies to accelerate EV adoption. These recommendations include expanding charging infrastructure, providing additional financial incentives, and strengthening the competitiveness of the EV industry.

European automakers are currently facing fierce competition from Chinese EV brands, which offer more competitive pricing and aggressive market strategies. This poses a significant challenge to Europe’s automotive industry. As a result, the EU’s policies are not only aimed at boosting domestic EV demand but also ensuring that European automakers remain competitive on a global scale.

Despite short-term challenges, the long-term outlook for Europe’s EV market remains optimistic. With stronger policy support, a shift in corporate fleet preferences, and improvements in charging infrastructure, demand for EVs is expected to recover gradually. In the coming years, Europe’s ability to compete with Chinese EV brands and the stability of government support policies will be key factors in determining the future growth of the EV market.