Electric mobility, considered a cornerstone of the European ecological transition, is today facing a major crisis. In several countries, such as Germany, the United Kingdom and Sweden, the end of public subsidies for the purchase of electric vehicles has caused a collapse of sales. In Germany, for example, registrations of electric vehicles have fallen by 27.4% in 2024after the elimination of certain direct aid to consumers.
This situation reflects a structural dependence of European markets on financial incentives. Consumers, although attracted by the advantages of electric vehicles, are reluctant to face the high initial costs. The removal of subsidies, which could represent up to €10,000 per vehicle in certain countries, had the effect of postponing or canceling thousands of orders. This trend threatens not only car manufacturers, but also all European objectives regarding the decarbonization of transport.
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The impact on charging infrastructure
This crisis is not limited to vehicle sales. The development of charging infrastructurecrucial to encouraging the adoption of electric vehicles, is also experiencing a slowdown. Investors, faced with an uncertain market, are hesitant to launch new projects. Many ongoing projects are on hold, particularly in rural areas, where initiatives relied heavily on subsidies or tax incentives.
In Europe, where the development of charging stations already lags behind needs, this situation exacerbates a structural problem. According to recent studies, only 6% of public charging points needed by 2030 have been deployed. This stagnation risks creating a vicious circle: without a reliable and accessible network, consumers will be even less inclined to invest in electric vehicles, further slowing the transition.
European climate ambitions in danger
Europe, engaged in an ambitious fight against climate change, sees its environmental objectives jeopardized by this crisis. THE European Green Dealwhich aims to achieve carbon neutrality by 2050, relies largely on a massive transition to electric vehicles. However, without the necessary financial incentives to encourage consumers and investors, this goal appears increasingly difficult to achieve.
-Reducing CO₂ emissions in the transport sector, responsible for around 25% of total emissions in Europe, is highly dependent on the adoption of electric vehicles. With a drop in sales and a delay in infrastructure, Europe could miss its climate targets set for 2030, leading to economic sanctions and a weakening of its position as a global leader in the fight against climate change.
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Reactions and solutions: what the automotive industry is asking for
Faced with these challenges, players in the automotive sector in Europe are calling for urgent action. Associations of manufacturers and dealers, such as ACEA (Association of European Automobile Manufacturers), are calling for the return of public aid in new forms. Among the solutions considered, subsidies targeted at the middle classesincentives for businesses and increased support for charging infrastructure top the list.
Some countries, such as France, are experimenting with alternative approaches, including replacement bonuses for thermal vehicles and decreasing subsidies based on income. These initiatives, if extended to a European scale, could help boost sales while maintaining fairness between consumers.
Additionally, innovative financing models, such as affordable leasing programs, are emerging as viable options to encourage drivers to go electric. At the same time, manufacturers themselves are stepping up efforts to reduce production costs, making electric vehicles more competitive without requiring massive support.
