Cars
In 2025, battery electric vehicles achieved record market share in the EU. Weakening the bloc's car CO2 regulations would jeopardise that progress and the EU car industry's position in the global EV race. China is ahead, and its EV production is accelerating.
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EU BEV share 2025 17%
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China BEV share 2025 31%
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EU BEV production 2025 2.1 million
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China BEV production 2025 9.7 million
The EV market is accelerating as new EU CO₂ targets enter into force. Growth in 2025 was driven by the release of more affordable models by carmakers to comply with the bloc’s targets.
EU BEV sales are growing across the Europe.
If European carmakers fail to keep up with the EV transition and allow China to dominate these markets, they would be giving up on significant swathes of global sales.
In Europe, the market is driven by EU car CO2 regulations, with each new target leading to an increase in EV sales.
However, the European Commission gave in to pressure from the car industry and proposed limiting EV sales to 85% by 2035. There is also a further risk that this figure could be reduced to 70% if the industry's proposals are adopted during the co-decision process.
Keeping the current regulation in place would maintain investment certainty for European industry to build value chains and increase domestic production.
Turbocharge: Company car fleets can electrify faster
The proposed corporate fleet EV targets are another tool that can turbo charge European electric car production. Already, 74% of corporate EV sales are vehicles made in the EU. The upcoming law is also expected to only allow fiscal support for EU-produced EVs.
Sources
For the numbers on top of the page: EU BEV share from ACEA, production and data for China from Bloomberg Intelligence.
For the intro text: BEV share expected in 2030 and 2035 under the Commission proposal from T&E analysis.