European electric vehicle sales are experiencing a halt, meanwhile, China is expanding its dominance in the market

Mercedes-Benz is facing challenges in electrifying its vehicle range in Europe, making it the only EU automaker yet to meet the CO2 fleet targets for 2025–27. In contrast, BMW, Renault, and Volkswagen are expected to achieve these targets. However, none of the manufacturers have explicitly pledged to have battery electric vehicles (BEVs) account for more than three-quarters of the car market solely to comply with EU regulations.

Despite this, all automakers, with the exception of Volkswagen, are on track to fulfil their CO2 targets for 2022. The Transparency International EU (T&E) attributes the weak reduction in EU car CO2 emissions to the targets being insufficiently ambitious.

In the first half of 2022, electric vehicle (EV) sales in Europe comprised 11% of the market, a decrease from 13% in the second half of the previous year. This stagnation in BEV sales comes as EV sales in the US increased by 50% during the same period. The difference in growth rates is believed to be due to a lack of legal incentives in Europe, in contrast to the growing electric car sales in the United States and China.

Europe's proportion of BEVs declined by two percentage points during the same time span. This decline coincides with reports of Europeans experiencing lengthy wait periods for electric cars in the first half of 2022.

T&E supports low-cost leasing for electric vehicles as a means of affordable electric car support, as proposed in France. This approach could help boost the adoption of electric vehicles and address the current stagnation in the market.

Looking ahead, automakers' voluntary promises suggest that BEVs will account for more than three-quarters of the automobile market by 2030. However, the current sluggish pace of electrification in Europe raises concerns about whether these targets can be met.

Moreover, the focus of European automakers on luxury models could put the mass market and mass employment at risk of being controlled by foreign firms. This shift could have significant economic implications for Europe in the long term.

In China, BEV sales increased to over 18% of the new car market in the first half of 2022. This rapid adoption of electric vehicles in China highlights the potential for Europe to follow suit and accelerate its own electrification efforts.

The EU's car CO2 emissions dropped by just 2% in the first half of 2022, despite the implementation of ambitious 2020/21 CO2 regulations. This lacklustre performance underscores the need for more effective strategies to encourage the adoption of electric vehicles and reduce emissions in Europe.

European electric vehicle sales are experiencing a halt, meanwhile, China is expanding its dominance in the market