The electric vehicle market in Europe experienced a historic moment in 2024, with the United Kingdom overtaking Germany as the continent's main reference in this sector. This change of leadership occurred after an increase in 21% in electric car registrations in the UK, which reached 381.970 units, while in Germany sales fell by 25%, adding only 380.600 vehiclesThe difference, although narrow, marks a milestone in the evolution of the European BEV (battery electric vehicle) market.
The UK's rise in this sector is largely due to government policies and regulations. The “zero-emission vehicle mandate” requires electric cars to account for 22% of total sales by 2024. This percentage will increase progressively until reaching 80% en 2030, which implies rapid adjustments by manufacturers to avoid fines of up to Libras 15.000 for a vehicle that does not comply with the regulations.
Impact of regulations and strategies
As the UK steps up its efforts to reduce carbon emissions, Germany has seen a significant drop in its figures due to the elimination of subsidies for the purchase of electric vehicles. These incentives, which ceased to apply at the end of 2023, were a key driver for sales, especially in the more affordable vehicle segment. In December 2024, BEV registrations in Germany fell by 39%, which contributed to the overall market decline.
In parallel, the British government has faced criticism for its ambitious targets. While sales have grown, adoption in the private market remains low. Only a 10% of private consumers are choosing electric cars, forcing manufacturers to invest in promotions and discounts to meet the required quotas.
France, Spain and Italy: contrasts in the electricity market
The electric market outlook in other European countries is mixed. In France, although BEV sales fell slightly (-2,6%), the "social leasing" program allowed 50.000 electric vehicles hit the market. However, the momentum diluted towards the second half of the year.
Spain, for its part, recorded an annual growth of 11,17% in electric vehicle registrations, reaching a share of 5,6%. However, preference for cheaper models and perceived inadequacy of charging infrastructure are significant barriers to wider adoption. Italy, by contrast, experienced a more pronounced decline, with market shares of 4,2% for electrical and 3,3% for plug-in hybrids. The elimination of incentives and the lack of affordable models explain this decline.
Norway: leader in share, but not in volume
Far from competing for volume, Norway remains the European benchmark in electric vehicle market share with a 89% of registrations by 2024. This achievement is possible thanks to a framework of fiscal and operational incentives, although they were reduced in the last year. The Nordic country could be the first to completely eliminate sales of internal combustion vehicles before 2025.
In terms of volume, Norway does not compete directly with markets such as the UK or Germany due to its smaller population. However, its success in transitioning to a sustainable automotive model provides an example that other countries could follow.
The UK's challenge for 2025 and beyond
Despite closing 2024 as the leader in BEV sales, the path for the UK is not without challenges. The stricter EU emissions regulations, which will come into force in 2025, and the need for more extensive charging infrastructure, will be key factors in consolidating its position. In addition, the British government is considering adjustments to its policies to support manufacturers without compromising climate goals. Measures being considered include the possibility of relaxing quotas, redefining the role of hybrids and encouraging new incentives for consumers and businesses.
With the introduction of new regulations and a renewed catalogue of electric models by brands, the next few years will be decisive for the European market. While the UK has managed to stand out in 2024, the challenge of increasing mass adoption of electric vehicles and overcoming economic and logistical barriers will be crucial to maintaining this lead.
Images | Ford, Hyundai and Tesla