Electric cars: in Europe, uptake is still tied to income

Electric cars: in Europe, uptake is still tied to income

Mobility · ·

Electric cars: in Europe, uptake is still tied to income. An Acea report on electric cars highlights the lag in countries with low GDP

The electric car is (also) a matter of GDP. With a market share now exceeding 10 per cent, low-environmental-impact vehicles are an established reality, yet for large swathes of the European population they remain a dream. Economic affordability remains an important variable, alongside the coverage of the charging network: this is the finding of research by Acea, the European Automobile Manufacturers' Association.

The case of Norway, between incentives and low electricity costs

Last year, battery electric cars and plug-in hybrids accounted for 10.5 per cent of all new vehicles sold in the European Union. Growth in recent years has been steady, yet three quarters of all electric car sales on the old continent are concentrated in just five countries in western Europe – Norway, Sweden, the Netherlands, Finland and Denmark – which boast a gross domestic product considerably higher than average; the remaining quarter of sales is distributed among the other 22 member states.

Opel Ampera-e
Norway is the leading European market for electric cars and the second largest in the world, after California. In the Nordic country, battery-powered vehicles share bus and taxi lanes © Pixabay

This scenario, together with strong state incentives and one of the lowest electricity prices in the world, makes Norway the country that, even in 2020, recorded the highest percentage of battery cars sold: e-cars accounted for 54.3 per cent of new vehicle purchases, an increase of 27.3 per cent compared to 2019, while plug-in hybrids reached 20.4 per cent of the market and hybrids 8.6 per cent. "As with the distribution of charging infrastructure," explains Eric-Mark Huitema, director general of Acea, "there is a clear divide in the affordability of electric cars between central and eastern Europe and western Europe, as well as a pronounced gap between north and south."

Electric cars must be accessible and affordable for everyone

In as many as 10 countries, the market share of battery-powered vehicles falls from 10.5 to less than 3 per cent: here, travelling "green" remains a luxury for the few. In essence, the sharp national variations in electric car sales across the European Union are clearly correlated with a country's standard of living. The nations at the bottom of the rankings for the penetration of these vehicles into the car fleet on the road all have an average GDP of less than 17,000 euros: this is the case, for example, of countries in central and eastern Europe and Greece.

Auto elettrica, in Europa la diffusione è ancora legata al reddito
Electric cars are winning over more and more Europeans © Sean Gallup/Getty Images

Furthermore, the five countries with the lowest market penetration of electric cars also have very few charging points, accounting for less than one per cent of the EU total. By contrast, a market share above 15 per cent is found only in the wealthiest countries of northern Europe, which boast an average GDP of over 46,000 euros. "To continue towards the zero-emission goal," concludes Huitema, "the European Commission must urgently ensure that all the right conditions are in place and that no country or citizen is left behind. Zero-emission vehicles must be accessible and affordable for everyone."