T&E study: Carmakers in Europe are failing to deliver affordable electric cars, holding back EV adoption
19 February 2024
Just 17% of electric cars sold in Europe are compact vehicles in the cheaper B segment, compared to 37% of new combustion engines, a new analysis by environmental NGO Transport & Environment (T&E) finds. Only 40 fully electric models were launched in the compact segments (A and B) between 2018 and 2023 compared to 66 large and luxury models (D and E), according to a new T&E report.
In Europe 28% of electric sales are in the large car D segment, compared to just 13% of new combustion cars, according to T&E’s analysis of 2023 sales figures from Dataforce. The average price of a battery electric car in Europe has increased by 39% (+€18,000) since 2015 while in China it has fallen by 53%. This is due to European manufacturers’ disproportionate focus on large cars and SUVs, which carry a price premium.
European carmakers are holding back the mass market adoption of EVs by not bringing affordable models to consumers faster and at volume. The disproportionate focus of manufacturers on large SUVs and premium models means we have too few mass-market cars and too high prices.
—Anna Krajinska, vehicle emissions manager at T&E
Of the sub-€25,000 models carmakers have planned, only 42,000 vehicles are likely to be produced for the European market this year, according to T&E analysis of production data from GlobalData. But despite the lack of affordable models, the EU market share of battery electric cars still grew by 2.5 percentage points to 14.6% in 2023.
However, EU BEV market share could already be at 22% if the corporate car segment, which accounts for most new car sales, were leading on electrification, the T&E analysis also finds. Currently, with an electric uptake of 14%, the corporate sector is lagging behind the private market (15%).
Taxation plays an important role in incentivizing electric car uptake, but in countries such as Germany, carmakers have opposed the reform of company car taxes that would increase the tax burden on gasoline and diesel cars. Setting binding electrification targets for corporate fleets will also be key to accelerating electrification in Europe. T&E is calling on the EU to set targets for fleets to be 100% electric by 2030 at the very latest. The EU Commission has opened a public consultation on greening company cars.
Another study that wants to prohibit the free mobility of the population! I don't read anything here about delivery vans, buses and up to 40 tons of trucks with BEV technology that drive a lot of miles every day - more like cars!!! A 100% BEV requirement should be introduced here! 99% of parcel services in the EU/FRG drive around with diesel engines!
So what is this “pro-heavy traffic” study supposed to do? ICE & BEV
Company cars are subsidized in the EU/FRG and that is illegal, but the pro-company car lobby here is extremely politically influenced - ordinary citizens have to subsidize it and they are ICE/BEV SUVs with an unladen weight of more than 2.5 tons!
Where do the batteries & parts for BEVs come from in the EU/FRG?
As far as is known, 100% batteries from China are used in the BEVs for the EU market! China is a despot country. That's why no BEV and parts from China - ever!
Who are T&E and the DUH?
In Germany, T&E and the DUH are known as tax-free associations that lobby against the free mobility of the population - financed by the state!
Posted by: Herman | 20 February 2024 at 01:52 AM
Seems like a Study driven by statistics (what the world should be like, in the Authors opinion and selective data) vs a Study based on consumer demand (what people would like to buy, if any) and what it actually costs to build an EU-quality vehicle (safety, enviro, and other regulations). I am not convinced that car companies are 'holding back' the cheapest possible vehicle from legitimate demand or other such malicious intent. If it's possible that it is cheaper to build a desirable vehicle, but only full ICE and people are only interested in that price point or that they simply prefer a full ICE, well then that's a free-market thing. Hopefully, through technology and economies of scale there will be something for everyone -and- that it will go further in resolving any arbitrary environmental or governance-type aspirations such people, regions, or institutions have.
Posted by: Jer | 20 February 2024 at 04:32 AM
The batteries in a BEV still cost more than the whole of a Class A car used to.
So the solution from the ogilopoly masquerading as capitalism is to stop producing Class A cars, and sell bloated lux cars.
Keeps the peasants off the road, I suppose.
Very ecological.
Posted by: Davemart | 20 February 2024 at 01:56 PM
When profit margins are thin it attracts very little capital you can talk how companies should do this or that but you're not on the board and you're not a shareholder.
Posted by: SJC | 20 February 2024 at 04:03 PM