E-mobility: 2024 in the rear view and th(E)-Vision for 2025

With December upon us, we approach the end of a turbulent year for e-mobility. Amid the political rhetoric that defined the lead up to this years’ EU elections and jostling for key positions, few other policy areas have drawn as much attention as the debate on Europe’s automobiles.  

As part of the EU’s Fit for 55 package, policymakers enacted a de facto ban on the sale of internal combustion engine (ICE) cars and vans by 2035. This move came under scrutiny in the lead up to the elections, as candidates running under the @European People’s Party (EPP) called for repeal given a struggling European automotive sector, and especially dismal electric vehicle (EV) sales. However, despite their election gains the Commission is not considering delaying the ban according to Teresa Ribera, the Commission's new Executive Vice-President for a Clean, Just and Competitive Transition. 

Taking this into consideration and with 2025 on the horizon, we are preparing for EVision 2025 where we will discuss all this and more. But first, a little preview. 

Accelerating e-mobility 

Europe’s e-mobility industry has witnessed significant growth over the past decade, with growing adoption of EVs and multiplying charging infrastructure across the continent. According to our latest Power Barometer, there are now a whopping 9 million EVs driving EU roads. Furthermore, these EVs are using more and more public chargers, whose numbers increased in 2023 from 448,000 to over 632,000. The aforementioned Fit for 55 package and its de facto ban on ICE cars was also a key contributor to this acceleration. 

Eurelectric, through various initiatives, has played a crucial role in supporting this uptake of EVs and improvement of Europe’s e-mobility infrastructure. One such initiative is the EVision business hub, a platform designed to increase the uptake and expansion of e-mobility by fostering collaboration between stakeholders, sharing best practices and providing comprehensive resources to support the deployment of EV infrastructure. The hub features useful case studies and organises events and meetings in which topics such as smart charging, digital interoperability, heavy-duty EVs and more are discussed by increasingly relevant and influential ecosystem actors. 

Despite the progress made, however, the journey towards widespread e-mobility adoption has not been without its challenges.  

Auto makers caught in a traffic jam 

The European automotive industry is in dire straits, as the sector has been struggling to maintain its competitiveness both at home and abroad. A blaring manifestation of this can be seen in Germany, once an auto manufacturing powerhouse with worldclass brands such as Volkswagen and BMW, but is now dealing with unprecedented factory closures as its economy slowly collapses. A key factor contributing to this decline - Draghi-diagnosed macroeconomic woes aside - is the rapid rise of foreign EV manufacturers (especially of Chinese origin), who are capturing an ever-greater share of the global market thanks to their cheaper and overall, measurably superior product.  

In a desperate attempt to protect its domestic industry, the EU introduced, and then increased, tariffs on Chinese-built EVs to as much as 45.3%, a move that has divided Member States and prompted retaliation from Beijing. However, these measures have not been sufficient when it comes to stemming the tide of Chinese EV dominance. In fact, as recently as October, China’s share of the global electric vehicle market reached 76%, a trend that is in clear defiance of Western efforts to the contrary.  

This is because the fundamental issue lies perhaps not with China, but instead in the structural problems within the European automotive sector itself - a problem that cannot be fixed by passing protectionist measures. Despite efforts to boost EV adoption, the sector has been hampered by several challenges, including high production costs (partially as a result of persistent high energy costs post-2022 energy crisis), insufficient charging infrastructure (the rollout of fast and ultrafast direct current chargers increased 77% to over 100,000, but regional disparities and slow processing of network connection requests persist) and an overall lack of consumer confidence. These are the issues that contribute to sluggish EV sales and a struggling industry that is unable to compete effectively with its international counterparts. 

So, where does this leave the European automotive sector? As the world moves past traditional fossil-fueled vehicles, the outlook is increasingly uncertain. As we look ahead to 2025, the industry and Europe as a whole will have to navigate a complex landscape of protectionist policies and global trade tensions. The upcoming threat of US tariffs from a returning of President Donald Trump, as well as the broader trend of protectionism, pose significant risks to the sector. Yet, there are opportunities for recovery and growth, particularly through dialogue and collaboration with policymakers and industry stakeholders. 

In view: EVision 2025 

As we close out 2024 and look ahead to 2025, the European e-mobility sector faces both challenges and opportunities. Interestingly, as of last week, European Commission President Ursula von der Leyen has committed herself to engaging in “strategic dialogue on the future of Europe’s car industry.” Such dialogue will no doubt include pressing issues facing the industry and explore potential solutions to ensure both its competitiveness and sustainability. Discussions are expected to take place early next year, focusing on identifying actionable strategies to support the transition to e-mobility and strengthen the sector’s resilience. 

Key events, such as EVision 2025, will also help shape the future of e-mobility in Europe. This event will bring together industry leaders, policymakers and stakeholders to discuss and explore the critical issues facing the e-mobility sector. EVision will provide a space for sharing insights, best practices and innovative solutions to drive the industry forward. Attendees will have the opportunity to engage in meaningful discussions on topics such as policy frameworks, technological advancements and investment strategies to support the growth of e-mobility. EVision will therefore be a crucial moment for the industry to come together. And by addressing the pressing challenges and leveraging opportunities for collaboration and innovation together, the European e-mobility sector can continue to drive towards a sustainable and competitive future. 

This week's edition written by:

Boris Kyrychenko, Strategic Communications Trainee - Eurelectric

With technical input by:

Nicholas A. Steinwand, Policy Communications Advisor - Eurelectric

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