European electric car sales to rebound in 2025, says study

PARIS: The market share for electric cars should rebound strongly in 2025 as limits on emissions get stricter and manufacturers propose cheaper models, a study released today said.

Electric vehicles will represent as much as 24 percent of new cars sold in Europe next year, according to a report by think tank Transport & Environment (T&E).

"EV sales are expected to rise to 24 percent market share in 2025, supported by an expansion of mass market EV offerings," the report said.

After three years of growth, EV sales slipped this year and represented just 14 percent of new car sales in Europe in the first half of 2024.

Higher sales in the Netherlands, Spain and Italy have not made up for a decline in Germany, Europe's largest market, after a surprise cut to public subsidies there.

But a slew of new, more affordable models expected in 2025, should boost sales throughout the region, T&E said.

A study presented on Sept 11 by BMI Research (a firm associated with Fitch) also forecast strong sales growth for EVs in Europe, driven by purchases by corporate fleets and long-term rental companies.