The European electric car market is witnessing rapid growth owing to the elevation in the consumer demand for shared mobility, strict government policies to lower the pollution levels, reduction in the costs of batteries, and improvements in the environmental awareness among consumers. In April 2022, 684,506 electric cars were sold in Europe, as per the ACEA. EVs accounted for about 10% of the total passenger cars registered in the European Union that year, as per the data of the ACEA.
Germany is expected to be one of the highest revenue generators in the European electric car market, attributed to its commitment to environmental sustainability, a strong industrial base, and the automotive manufacturing strengths, which give it an edge over other countries in Europe, such as Norway. In addition to this, German consumers benefit from a 10-year exemption from ownership tax on electric vehicles purchased between 2011 and 2030. All the benefits offered by the government, coupled with the industrial expertise, will strengthen the German EV supply chain logistics.
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| Europe Electric Car Market Report by P&S Intelligence |
The HEV category, based on propulsion type, will be potentially large in the European electric car market, owing to the regenerative braking system, smaller engines, lighter raw materials, and consequently lower energy requirements of these vehicles. The FCEV category will also observe growth owing to the fast refueling and zero tailpipe emissions of these variants, rising number of government initiatives for setting up hydrogen stations, and increasing expenditure on the R&D of the hydrogen fuel cell technology.
The outbreak of the novel coronavirus fractured the European electric car market, like many other sectors, by disrupting supply chains and limiting the workforce. It had a deep impact on consumer behavior, as people reduced their spending on purchasing a car and on shared mobility services, while the manufacturing facilities were paralyzed in the first half of 2020 due to the lockdown measures. However, the automotive sector recovered soon owing to the strong government support, which benefitted the manufacturers and the consumers.
Therefore, a strong industrial base, coupled with the extensive government support, will burgeon the adoption of the
electric cars in the continent.
