Lack Of Incentives Keep EVs Unaffordable In Europe, Says ACEA

Lack Of Incentives Keep EVs Unaffordable In Europe Says ACEA

The latest data from the European Automobile Manufacturers Association (ACEA) shared that affordability concerns are the major cause that hampers market uptake for electric vehicles (EVs).

Despite European Union (EU) legislative efforts to reduce CO2 emissions from vehicles, a lack of initiatives at both EU and national levels prevents acceleration in market uptake of electric cars. The latest ACEA data on electrically chargeable vehicles (ECVs) confirms that affordability remains a significant obstacle for European consumers, as many are forced to refrain from purchasing electric vehicles.

Electric cars represented 9% or less of the market share in more than half of EU member states. These countries are mainly concentrated in central eastern and southern Europe. They have an average net income is €13,000. In contrast, the highest shares (30% and over) are found in just five northern and western European countries where net income exceeds €32,000.

These latest figures are a pertinent reminder that the lack of consumer incentives for purchasing cleaner and greener vehicles is hampering the vast potential of Europe’s electric car market. The lack of enabling conditions, including access to charging infrastructure, also exacerbates market share disparities across member states and regions in the EU.

The European auto industry has invested significantly in electric vehicle technology. Electrification is the most efficient way to minimize road transport’s carbon footprint, reduce pollutant emissions, and improve air quality, but affordability issues are putting the brakes on this much-needed transition.

Decision-makers must now act accordingly by establishing holistic enabling conditions. Fast-tracking the installation of electric vehicle charging points across the continent, especially in countries where the infrastructure is notably lacking, is just one of these measures. Moreover, purchase incentives, which help alleviate the affordability challenges faced by European consumers, can further stimulate Europe’s transition to a net-zero future.