EV sales are expected to surge before the expiry of tax credits and then experience a prolonged slowdown, the report says.Battery electric vehicles are expected to exceed half of new light vehicle sales in Europe by 2032 and overtake sales of hybrids after 2030, according to an EY report published on Tuesday.
While European brands have been slower to produce affordable electric models, EY’s study forecasts that BEVs will account for nearly all new car sales in Europe by 2050.
“Policy targets, a rebound in demand and affordable models are expected to drive EV uptake,” the report says, despite flagging softened emission penalties through 2027.
This week European automakers are showcasing new EVs amidst tough competition from Chinese brands at this year’s IAA Mobility in Munich, Germany.
Europe’s automotive sector is currently facing a range of challenges including Chinese competition at home and tariff hikes from the US
In the US meanwhile, EV sales are expected to surge before the expiry of tax credits and then experience a prolonged slowdown, the report says.
Globally, looking at Europe, the US and China, EY expects light vehicle sales to see moderate growth in 2025, slowing to 2.2 per cent year on year from 8 per cent sales growth in 2023, down to under 2 per cent annually by 2030.
It cites escalating trade tensions, rare earth shortages and the phase-out of US EV credits which are expected to disrupt supply chains and affect affordability.
