European auto industry urges EU to take action amid decline in EV demand

The European Automobile Manufacturers’ Association (ACEA) has issued an urgent call for EU policymakers to act swiftly as demand for electric vehicles (EVs) continues to decline across the continent. Recent data shows a consistent drop in market share for battery electric vehicles (BEVs), signalling potential trouble for automakers as the EU’s 2025 CO2 targets for cars and vans loom closer.

ACEA, representing major auto manufacturers like BMW, Volkswagen, and Renault, is requesting immediate relief measures to support the adoption of zero-emission vehicles. Despite heavy investments in electrification and EV production, manufacturers are struggling to meet the demand necessary to achieve the ambitious targets. Key challenges include the lack of sufficient charging infrastructure, rising costs, and growing competition from automakers outside Europe, especially China.

Data released by ACEA shows that EU battery-electric vehicle sales have fallen by 8.4% this year, with market share dropping from 13.9% to 12.6%. These trends are leading manufacturers to question the achievability of future CO2 regulations without significant changes. 

The group is now urging the EU to accelerate the review of the CO2 regulations for light-duty and heavy-duty vehicles, originally scheduled for 2026 and 2027, and bring them forward to 2025. ACEA believes that without urgent action, the European automotive industry could face billions in fines, unnecessary production cuts, and job losses across the region.