Small, cheap EVs expected to boost market share by 40% next year in Europe

Despite predictions of a major slump in automatic sales around the globe, the European auto industry predicts that this will spark a huge uptick in EV sales in the EU – and that’s thanks to a flood of new, cheap models hitting the market. 

The European Union could see a 40% growth in market share of battery-electric vehicles by 2024, according to the European Automobile Manufacturers’ Association (ACEA). In conjunction with the opening of COP 28, the organization released its predictions yesterday, alongside a manifesto describing its vision for European policy in the sector.

The ACEA, which represents the 14 major Europe-based automakers and is headed by Luca de Meo, the CEO of Renault Group, claims that a fresh launch of affordable BEVs will boost EV share in the region. It predicts that new EVs with cheaper, smaller LPF batteries – such as the Renault 5 and Citroën models, as well as even smaller cars with more limited range, such as the Twingo and the VW Polo – will attract consumers with low prices, thereby increasing demand.

The ACEA predicts market share of battery EVs to rise from 14-14.5% this year to about 20% next year, as Reuters reports.

The forecasts include policy recommendations for the next five years (2024-2029), including strategies for developing supply chains and reducing new regulations. The organization cites that the industry is now facing eight or nine European regulations coming into force each year until 2030, with some of them being contradictory.

The organization is also calling for the speed of installations of charging stations to be multiplied by a factor of 7 to 10.  

De Meo said that the European auto industry is fully committed to meeting the net-zero targets through battery-electric vehicles, but that there might be room for hydrogen fuel cell and synthetic e-fuel powertrains.

“Our sector is in the midst of the biggest transformation in over a century,” he said. “There is no question for us about the need to decarbonize. We are investing billions to make this happen – far more than any other sector.”

“We will have ups and downs on EVs, but in the long term, there’s no way back because it’s written in the rules.”