The European Union urges to become the largest electric vehicle market in the coming years.
The European automobile market was already very significant to car manufacturers due to its considerable size. However, in 2019, there was a 44% rise in sales of electric vehicleс on the Old Continent, exceeding 2016 numbers, hinting at Europe becoming one of the biggest electric vehicle market soon.
Chemnitz Automotive Institute, a German automotive research center, suggested that by the year 2025, the market share for electric vehicles will be around 25%, meaning that one in every four cars sold would fully or partially electric.
According to CATI’s study, there were 17 EV production plants in eight countries in 2019. The institute predicts the number to double to 35 locations, in eleven countries, by the year 2022. Moreover, they expect production of 1.2 million EVs by 2022, and 20 million by 2025.
The study also mentions Germany as the hub for electric vehicle production by 2025. The institute predicts 600,000 EV units will be produced by 2022 and 1.1 million by 2025, and that is in Germany alone! By that point, Germany’s manufacturing plants will account for more than 50% of Europe’s capacity.
“We are currently observing a ramp-up in e-mobility, which is still taking place with the handbrake on. However, according to our investigations, this will resolve itself in the next two years,” states the report.
However, one of the possible reasons for the rise in EV market share may be the recent European CO2 emission regulations. More specifically, carmakers will have to maintain a certain balance between internal combustion engines and electric vehicles to avoid paying fines.
“Developments indicate that the ongoing market uncertainties concerning future drive technologies are causing automobile manufacturers to diversify their drive strategies increasingly,” emphasized Professor Werner Olle.
Moreover, the rise of EVs in Europe will inadvertently diversify car manufacturers’ portfolio and modify their development strategies. On the other hand, the volatility of crude oil prices is also expected to negatively affect the gas-powered vehicle segment, ultimately pushing more people to change to EVs.
A rising opportunity lies in the light-commercial segment, and these vehicles account for a lot of CO2 emissions. However, these vehicles must first overtake their ICE counterparts. And to do that, profitability is the key.
Furthermore, a manufacturer may face some issues with the disponibility of specific components due to the limited number of suppliers. However, there has been significant progress in the OEM EV part manufacturing segment in recent years too. By the end of 2019, there were only nine OEM parts facilities in Europe, but that number is expected to double by 2025.
Even in countries like the United States, electric vehicles are also gaining ground every day. We cannot deny that Elon Musk’s Tesla is one of the primary reasons for the rising popularity.
But for countries like India, where the road infrastructure is not on par, aiming to set-up a suitable charging network is a ten-year goal. Nevertheless, as electric vehicles are one of the best ways to significantly reduce CO2 emissions and our overall footprint on the planet, it’s comforting to see them accepted on a larger scale a little more every year.