The European Union (EU) passenger car market is on the brink of
a major transformation, driven by the electrification of vehicles
and tightening CO2 emissions regulations.
Our recent whitepaper highlights key trends that will shape the
future of the European auto industry.
Here are some key takeaways:
- The European Union (EU) passenger car market is expected to
experience a substantial transformation in the coming years. This
is primarily due to the acceleration of the electrification of
passenger cars, driven by the tightening of fleet CO2 regulations
imposed on manufacturers. By 2030, battery electric vehicles (BEVs)
and plug-in hybrid electric vehicles (PHEVs) are projected to
account for just under three-quarters of the market sales. - The market share of internal combustion engine (ICE) vehicles
is expected to decline significantly, reaching just 1% of sales by
2030. They will be partially replaced by mild hybrid electric
vehicles (MHEVs) and hybrid electric vehicles (HEVs). - The share of diesel vehicles is also expected to continue its
decline, reaching only 2% of the market by 2030, down from 24% in
2021, and more than 50% in 2015. Gasoline vehicles will persist for
longer but will gradually decrease as electric vehicles dominate
the market. - These propulsion trends are expected to lead to a significant
decrease in average CO2 emissions, from 115.8 g/km in 2021 to 38.6
g/km in 2030. However, some car manufacturers may struggle to meet
the regulatory targets, leading to potential financial
penalties. - The strong growth in sales of electrified vehicles will drive a
massive increase in demand for lithium-ion batteries. The annual
requirement is expected to grow from 69 GWh in 2021 to 515 GWh in
2030, with BEVs dominating the demand.
For more insights, access the full whitepaper.
Download Whitepaper
