The European car industry faces a pivotal year after tough EU CO2 emission standards came into force on 1 January, requiring a sharp increase in electric vehicle production to avoid hefty fines.
With the imminent threat of fines amounting to €15 billion, manufacturers are now compelled to accelerate the shift towards electric vehicles – or EVs – in the midst of a sluggish market.
Under the new regulations, at least 20 percent of vehicles sold must be electric to avoid penalties. This target presents significant challenges, with EVs making up just over 13 percent of total sales in Europe during 2024.
The drop comes after a strong 2023, when EVs represented nearly 23 percent of new registrations across the EU.
Battery electric vehicles (BEVs) accountied for 15 percent of the market, with 2.4 million electric cars registered that year – a 20 percent increase from 2022.
With EU targets aiming for a drastic reduction in vehicle emissions in 2025 – in tandem with a zero-CO2 goal by 2035 – a continuous rise in the adoption of zero-emission vehicles will prove essential for Europe to achieve its climate objectives.
