Expanding Electric Vehicle Market in Europe: Significant Advancement Yet Inequality Remains Prevalent

Europe is witnessing a significant shift towards battery electric vehicles (BEVs), with the total fleet share of BEVs nearly sevenfold since 2019, rising from 0.4% to 2.7%. This trend is illustrated in a graph based on data from the Light Vehicle Database of automotive data analysts Astutus Research.

The penetration of BEVs is expected to be most pronounced in the Nordics and Northwestern Europe, with these regions already boasting a combined BEV penetration level of 3.6%. Conversely, Southern and Eastern Europe are likely to see the smallest adoption rates, with BEVs representing just 0.8% and 0.6% of all cars in Southern and Central Europe, respectively.

This divergence in BEV adoption rates could lead to international fleet managers having to navigate two distinct markets: one rapidly transitioning towards full electrification in the short term, and another stuck in a more gradual phase of change.

Norway, a country known for its commitment to electrification, has seen its BEV share increase just short of threefold from its initial 9.3%. Similarly, Central Europe has experienced an eightfold increase in the relative share of BEVs in national fleets.

However, without targeted support, the gap in BEV adoption across Europe risks widening, particularly in regions with smaller BEV penetration. Regulators and legislators in these areas may face challenges in meeting their electrification targets.

The relative growth of BEVs in the other Nordics (Denmark, Finland, Sweden) is more than 15-fold, from 0.5% to 7.7%. Despite the significant relative growth of the BEV share being slightly smaller than the absolute number due to the total fleet growing by around 20%, countries in Central and Southern Europe have also seen substantial increases in the absolute share of BEVs.

The total fleet of pure-electric cars and SUVs in Europe increased from 1 million units in 2019 to 8.11 million in 2024. According to the International Energy Agency (IEA), BEV sales in Europe are forecasted to grow to exceed 55% by 2030, potentially driving the total BEV stock penetration to between 20-25%.

Europe currently sits in a middle position worldwide in terms of BEV share, behind China and ahead of the U.S. However, the growth of BEVs in Europe has slowed down in later years due to subsidy reductions from 2023 onwards.

The IEA's forecast and the current trends suggest that Europe is on the cusp of a major transformation towards electrified transportation. Yet, the geographical divide in BEV adoption rates poses a challenge that needs to be addressed to ensure a smooth and equitable transition.

Expanding Electric Vehicle Market in Europe: Significant Advancement Yet Inequality Remains Prevalent