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Europe Daily Bulletin No. 13572
SECTORAL POLICIES / Transport/industry

Electric vehicles – European experts recommend Member States introduce incentives to boost demand

During a debate organised by the European association for electromobility, E-mobility Europe (formerly AVERE), on Tuesday, 4 February, European experts recommended Member States introduce incentives to boost demand for European electric vehicles.

According to Senior Director of Electric Vehicles and Batteries Julia Poliscanova at the NGO network Transport & Environment (T&E), “2024 is not representative of the market”. She pointed out, “The market is there [given] how many Chinese EV[s] were bought.” She was rather optimistic about 2025, since new European electric vehicle models are going to be put on the market. She recommended expediting the electrification of business fleets (see EUROPE 13566/19) and increasing support for electric vehicles manufactured in Europe – for example, by means of an eco-bonus.

According to European Automobile Manufacturers’ Association (ACEA) Director General Sigrid de Vries, we need to understand the needs of the market. For example, car hire companies actually encounter reluctance: their clients are hesitant to hire electric vehicles. She advises policymakers to “encourage rather than dictate”. “Strategic dialogue makes a difference, but more legislative flexibility is needed”, she felt (see EUROPE 13570/11).

Demand is not where we would like [it to be]”, noted Céline Domecq, who heads Volvo’s European office. In her opinion, it is an “urgent” situation: “We need to stop the discussion on stopping the 2035 [decarbonisation] targets and work on improving the market”. This includes the need to invest in what the European industry needs: for instance, increasing the number of battery manufacturers and enabling them to become a powerful force. “We need to start running to catch up with the United States and China”, she declared.

She was in favour of introducing incentives – specifically tax incentives – to boost demand, such as incentives to install charging points. “No matter what type of incentive, people [will] take it”, she maintained. “It works.”

For her part, European Commission Director-General for Mobility and Transport (DG MOVE) Magda Kopczyńska also supported the idea of tax incentives but reiterated that they fall within Member States’ competence. (Original version in French by Anne Damiani)

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