The European Electric Car Report Edition 3 – 2021

The German market is becoming a magnet for manufacturers hoping to offload CO2 fleet-beating electric cars to remain CO2 compliant, thanks to both generous plug-in purchase incentives in Germany - driving the country to a dominating one-third share of the total West European BEV market during the first quarter of the year - and attractive fiscal benefits for drivers of plug-in company cars, boosting PHEV volumes by similar levels. Sweden, on the other hand, may be about to absorb some of that high voltage strain.

Reported by Schmidt Automotive Research

While the German vehicle market accounted for only one-fourth of total passenger car registrations throughout the 18 market regions in the first quarter, its xEV plug-in passenger car new registrations volume accounted for one-third (32%). Over the same time period, the real xEV penetration level in Germany (21.7%) was greater than the market average (16%). When it comes to new passenger car plug-in penetration, it is the largest non-nordic EU market.

Sweden (35.6%), Finland (25.9%), and Denmark (24.0%) all achieved greater xEV penetration levels, as did non-EU markets Norway (82%) and Iceland (51.5%), all of which are included in the EU fleet average objective. Sweden, which has been fueled by PHEVs up to now, helping its xEV volumes (Q1 2021: 32,388) surpass that of neighbouring Norway (29,789) this year, is expected to shift in favour of BEVs beginning in April thanks to a change to the Bonus Malus system that will reward BEVs with higher incentives while reducing PHEVs.

As a result, PHEVs had a late-March bump, accounting for slightly under every third passenger car and leading the 18 market region in both March and the quarter. BEVs will get SEK 70,000 (€6,900) starting in April, a SEK 10,000 increase. PHEVs will have a revised WLTP ceiling of 60g/km, down from 70g/km previously, and their bonus will be limited to SEK 45,000 (€4,400). As a result, it is projected that pent-up BEV demand will hit Swedish roads in April, while PHEVs will slow.

Meanwhile, in March, the UK reduced BEV purchase subsidies (max. GBP 2,500/€2,900) for vehicles with a maximum price of GBP 35,000, down from GBP 50,000 before, causing some manufacturers to decrease entry-level prices to within the new border within hours. The UK is in a critical year in which OEMs must satisfy independent CO2 targets, which is why, despite the subsidy drop, UK plug-in volumes are projected to stay strong this year. During the first quarter, the UK’s BEV volumes were second only to Germany and ahead of France.

Vehicle dimensions are also being influenced by EV purchasing subsidies. Demand for compact EVs is increasing as a result of German subsidies that favour smaller BEVs proportionally. VW’s eUp was the most popular BEV in Germany (Q1)

Source: The European Electric Car Report Edition 3 2021 | Schmidt Automotive Research
Download Report
Reported by Schmidt Automotive Research

Related Partner Reports

September 18th update

Why affordable electric cars in 2025 are feasible

This report assesses the possibility of making €25,000 battery electric vehicles (BEVs) accessible in Europe by 2025. It analyzes factors affecting car prices, automaker strategies, and market dynamics. The report explores automaker profits, the rise of SUVs, and the discontinuation of smaller car models. It also examines the economic viability of small BEVs and their potential to boost electric...
Reported by Transport & Environment
August 14th update

Leasing is lagging: An analysis of BEV uptake in France

This report investigates France’s car leasing sector, emphasizing major players, profitability, and impact on decarbonization and electromobility. It highlights record profits, mergers, and the industry's role in promoting sustainable transportation.
Reported by Transport & Environment
August 7th update

Battery metals demand from electrifying passenger transport

The report examines the demand for battery raw materials to electrify European passenger transport under different scenarios. It highlights the significance of smaller batteries, innovative technologies, and policy measures to reduce demand responsibly and sustainably.
Reported by
July 10th update

Addendum: Addressing the heavy-duty climate problem

This report assesses the European Commission's proposal on CO2 standards for heavy-duty vehicles (HDVs) and compares it to more ambitious targets suggested by T&E. It analyzes the proposal's impact on emissions, energy consumption, and the EU's carbon budget, highlighting its shortcomings. The report recommends stronger CO2 targets for HDVs based on industry commitments for zero-emission sales by 2030.
Reported by Transport & Environment
June 28th update

Critical Raw Materials Act position paper

This report analyzes the European Union's CRM Act proposal for securing critical metals in the renewable energy transition. It discusses China's dominance in metal refining and the impact of the US Inflation Reduction Act. The report emphasizes the need for a balanced approach, stronger requirements for strategic projects and environmental reporting, and alignment with European values and community involvement....
Reported by Transport & Environment
June 26th update

State of the Industry Report 2023

This report provides an in-depth analysis of Plug&Charge, an industry-wide innovation revolutionizing EV charging. It covers the development, implementation, and adoption of Plug&Charge technology, along with key trends and business perspectives within the eMobility industry. The report aims to help readers gain a comprehensive understanding of the industry developments and make strategic decisions on implementing this future technology.
Reported by Hubject

Get started Free of Charge

EV Reports Database