The European Union (EU) is the leading EV market globally. According to a StockApps.com analysis, the projection for sales of EVs in the EU is 4.4 million units by 2026. The site suggests that a growing awareness about the environment will propel that growth.
“The European EV market is blooming and what’s driving it isn’t just the promise of cleaner air and lower emissions. It’s also a matter of consumer choice as there’s growing consumer concern about climate change throughout the region,” says StockApps.com’s Edith Reads.
How does the European Climate law impact the EV market?
Market data shows that the European EV market will reach 11.9M units growing by a CAGR of 29.6% between 2021 and 2028. The growth is driven by several factors, primarily the EU’s initiatives to curb emissions, StockApps.com says.
The EU has ratified the European Climate Law targeting climate neutrality before 2050. That law also seeks to bring GHG emissions 55% lower than 1990 levels by 2030. These standards require automakers to produce more efficient vehicles. They will be phased in over several years in readiness for full implementation by 2030. As a result, automakers are investing heavily in R&D programs to develop more fuel-efficient engines and hybrid vehicles that can run on both gasoline and electricity, according to StockApps.com.
Besides the environmental laws, EU governments are also incentivizing EV production and adoption. Through subsidies, they’re encouraging automakers to ditch ICEs in favor of electric ones. Similarly, they are offering tax breaks for people who buy them.
In addition, there has been a rapid expansion of charging infrastructure and battery technology, making EVs more attractive to consumers and businesses. EV battery costs have been declining with time, cutting production costs and making them affordable to many, according to StockApps.com.
