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Europe’s EV sales have shrunk year to date, raising concerns among OEMs and policy groups about meeting the EU’s 2025 CO2 target. The European Automobile Manufacturers’ Association (ACEA), a lobbying group made up of 15 of Europe’s major car, truck, van and bus makers, has called on the EU to reconsider the 2025 CO2 target. This follows reports of the Italian government seeking an early review of the 2035 ICE ban.
ACEA worried about poor EV sales growth in Europe
Year to date EV sales in Europe have contracted 4% compared to 2023 levels, prompting ACEA to advocate for the EU to introduce emergency policy measures, calling for “urgent relief measures” before the 2025 target takes effect. If the industry fails to meet this target, it could result in multi-billion-euro fines. By 2025, overall fleet emissions must reach 93.6 grams of CO2 per kilometre travelled, down from 106.6 grams in 2023. However, each automaker has specific targets relative to the average mass of vehicles it registers.
Other players have hit targets already
Not all manufacturers face the same challenges. Rho Motion analysis indicates that brands such as Kia, BMW, and Hyundai are currently above the target but are likely on course to achieve the 2025 requirement. Meanwhile, Volvo and Stellantis already surpassed their 2025 targets in 2023.
Stellantis, a former member of ACEA, opposes any delay in the 2025 target, arguing that the industry has long been aware of the impending regulations. Having left the ACEA in 2022, Stellantis has since launched its own “Freedom of Mobility Forum.” Similarly, Volvo Cars, another ex-member, departed from the ACEA in 2022 due to disagreements over zero-emission strategies.
Read: Automakers scale back electrification ambitions as EV markets yield slower than expected growth
Shifts in the Market Landscape
The call for a review of these targets occurs amid wider policy debates. The Italian government is reportedly pushing for a reconsideration of the 2035 ICE ban, citing the need for targets to reflect evolving market realities. Conversely, in the UK, the new government is considering reinstating the 2030 ICE ban, which was recently delayed to 2035 as of September 2023.
More Information
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