Lowering emissions targets is hurting the European electric vehicle industry: T&E
Sales of electric vehicles in the EU between 2025 and 2027 are expected to be 2 million tons lower than previous forecasts due to the fact that the European Commission lowered its CO2 emission targets for 2025, setting them on average for 2025-2027, the European Federation of Transport and the Environment (T&E) said
And this is despite the positive dynamics of the market, which contributes to the growth of sales of electrical goods. According to T&E forecasts, the cost of batteries will decrease by 27% between 2022 and the end of this year, and by 2027 it will decrease by another 28% compared to the level of 2025. Charging infrastructure has been deployed on 77% of the EU's main motorway network, and all member states have already reached or exceeded the number of public charging points required by the EU's 2025 target.
Automakers are putting pressure on the EU to reduce their emissions targets for 2030 and 2035. Earlier this year, the Commission said that compliance would be assessed over a three-year period from 2025 to 2027, rather than over a one-year period.
"Hardware manufacturers paint a terrible picture because they want their targets to be weakened. But the reality is that sales of electric vehicles are growing rapidly, and emissions regulations are key to this equation," T&E said in a note reviewed by Callanish. "By adhering to agreed rules, Europe can give its automotive industry a chance to compete in the global electric vehicle race. But weakening targets could lead other manufacturers to follow the path of Mercedes, which is lagging behind in electrification and is forced to buy loans from its competitors."
"While the EU is discussing further relaxation of its emissions regulations, global producers are rapidly switching to electricity," T&E notes. India, Mexico, Indonesia, and Thailand account for 5%, 5%, 13%, and 24% of the electric vehicle market, respectively. In the world's largest automotive market, China, the share of sales of battery electric vehicles (BEV) will exceed 30% by the end of 2025, according to the report.
Adam Smith Austria
Kallanish.com