ACEA: Europe's car manufacturers demand more help from the EU

The continuing trend of a shrinking market share of battery electric cars in the EU is an extremely worrying signal for the industry and policy makers. The European car manufacturers united in ACEA are therefore calling on the EU institutions to urgently take relief measures before the new CO2 targets for cars and vans come into force in 2025.

In addition, the European Commission is being asked to bring forward the review of CO2 regulations for light and heavy commercial vehicles, which is currently planned for 2026 and 2027 respectively, to 2025.

The European automotive industry supports the Paris Agreement and the EU targets to decarbonise transport by 2050 and has invested billions in electrification to bring vehicles to market, the association said. Today, vehicle technology and the availability of zero-emission vehicles are not bottlenecks. The industry is playing its part in this transition, but the other necessary elements for this system change are not yet in place. An aggravating factor is the rapid erosion of the EU's competitiveness, as confirmed in the Draghi report.

Electric car market on the downswing

The latest EU registration data published today by the ACEA once again confirmed that the market for electric cars is on a continuous downward trend. EU car sales are still around 18% below the pre-pandemic level of 2019. Since the beginning of the year, sales of battery electric vehicles in the EU have fallen by 8.4% in an already shrinking market.

The market share of battery electric vehicles in the EU has fallen from 13.9% last year to 12.6% this year. The market decline affects many brands, including ACEA members and beyond (ACEA registration data for August). Only 16% of European non-EV owners are considering buying an EV for their next vehicle purchase, down from 18% in 2021, according to McKinsey.

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The ACEA board explains:

"We are missing crucial prerequisites to achieve the necessary boost in production and acceptance of zero-emission vehicles: Charging and hydrogen refuelling infrastructure as well as a competitive production environment, affordable green energy, purchase and tax incentives and a secure supply of raw materials, hydrogen and batteries. Economic growth, consumer acceptance and confidence in the infrastructure are also not yet sufficiently developed.

As a result, the transition to zero-emission vehicles is a major challenge and there is growing concern about meeting the 2025 targets for reducing CO2 emissions from cars and vans. The current regulations do not take into account the profound change in the geopolitical and economic climate in recent years, and the fact that the law is unable to adapt to real developments further undermines the competitiveness of the sector.

Fines or less production?

This leads to the frightening prospect of either billions in fines, which could otherwise be invested in the transition to zero-emission vehicles, or unnecessary production cuts, job losses and a weakening of the European supply and value chain at a time when we are facing fierce competition from other regions in the automotive industry.

The industry cannot afford to wait for the review of CO2 regulations in 2026 and 2027. We urgently need meaningful action now to reverse the downward trend, restore the competitiveness of the EU industry and address strategic weaknesses. For heavy-duty vehicles, an earlier review is also absolutely crucial to ensure that key enablers such as infrastructure for trucks and buses are improved in time.

We are ready to discuss a package of short-term relief for the 2025 CO2 targets for cars and vans as well as a swift, comprehensive and robust review of the CO2 regulations for cars and trucks and targeted secondary legislation to kick-start the transition to zero-emission vehicles and secure Europe's industrial future."