ACEA calls for urgent action following worsening battery-electric vehicle outlook in Europe
November 13, 2024
Analytics company S&P Global, headquartered in New York, USA, has published new data showing a worsening outlook for the battery-electric vehicle (BEV) market in the EU. Forecasts for the first half of 2025 now show a 27% downward revision to 21% today. This may signal a major compliance setback for the EU’s 2025 emission targets.
“Without a targeted automotive industrial action plan, we risk falling behind the US and China,” stated Martin Kupka, Czech Transport Minister. “The reality check shows that the EU needs to have a more flexible system in place for auto manufacturers to reach the ambitious CO2 reduction targets. We should ensure the industry uses profits to invest into new solutions instead of paying penalties.”
As the data from S&P Global suggests, a stagnating market significantly increases compliance costs for manufacturers. For example, to meet emissions targets, manufacturers may need to pool credits with Chinese and US manufacturers, directing payments to non-EU manufacturers at the expense of European industry. S&P Global noted that a robust, comprehensive and immediate review of the current approach is essential, given that the current trajectory diverges sharply from earlier projections.
Sigrid de Vries, ACEA Director General, explained, “The looming crisis necessitates urgent action. All indicators point to a stagnating EU electric vehicle market at a time when acceleration is needed. Apart from the disproportionate compliance costs for EU manufacturers in 2025, the success of the entire road transport decarbonisation policy is at risk. We appreciate that several European Commissioners have emphasised regulatory predictability and stability in their confirmation hearings, but stability can’t be a goal in itself. Manufacturers have invested heavily and will continue doing so. Europe must stay on course of the green transformation by adopting a strategy that works.”
The European Automobile Manufacturers’ Association (ACEA) has consistently urged EU policymakers to address the steep compliance costs associated with the 2025 targets. These costs are largely attributed to factors outside manufacturers’ control, such as a lack of widespread charging infrastructure and EV market stimulus.
