Sales of electric vehicles (BEVs) in the main European markets* will increase in 2022 by 28% compared to the previous year, but this year the evolution will depend on the government’s policy of financial stimulation of the population for these purchases, according to the analysis carried out by Strategy&, the global strategy department of the network PwC. In the final quarter of last year, sales rose 39% compared to the corresponding period in 2021, as consumers rushed to take advantage of comprehensive incentives. Starting this year, several states with large auto markets have reduced or eliminated incentives.

“Several countries are now entering another stage of BEV market development where they believe that government incentives have served their purpose and where they are relying on greater consumer interest as well as regulations to limit CO2 emissions. But it remains to be seen whether the removal or reduction of stimulus in both Europe and China will have a significant impact on the market. Even in Romania, it is possible that the amounts granted through Rabla Plus are limited to electric cars more expensive than 60,000 euros, which already exists in other European countries. In fact, Romania now offers some of the highest incentives of €10,000, which has been reflected in a significant increase in sales of environmentally friendly cars of almost 50% in 2022,” said Daniel Angel, partner and head of automotive industry at PwC Romania. .

The reduction of incentives is already visible in the markets

After Germans bought more hybrids and BEVs than combustion cars (+66%) for the first time in the fourth quarter, as consumers rushed to take advantage of comprehensive incentives, the market has seen a year-to-date contraction due to lower volumes. From January 2023, the incentives dropped from €6,000 to €4,500 for models up to €40,000 and from €5,000 to €3,000 for models up to €65,000, and incentives for PHEVs were abolished.

And BEV buyers in France receive a maximum of €5,000 from the state from the beginning of 2023, down by €1,000. However, the incentive for low-income households increased to 7,000 euros.

In China, whose market grew by 87% last year, BEV subsidies have been completely removed.

Other conclusions of the report:

• The total volume of sales of electric vehicles – BEVs, hybrids and plug-ins in the five main European markets increased by 12% to 3.7 million vehicles. When Austria, Norway, Sweden, Switzerland and the Netherlands are added, sales rose 11.4% to 4.4 million.
• Despite geopolitical tensions and high energy prices, global BEV sales in 2022 increased by 70% compared to the previous year.
• In terms of the total cost of ownership of such a car, electric cars will surpass internal combustion engines.
• Geopolitical tensions are increasing pressure on European OEMs, forcing them to build their own battery production facilities in Europe.
• The US BEV market grew by 88% last year.

*In the report, the strategy analyzes the main European automotive markets, namely Germany, France, Italy, Spain and the United Kingdom.

Article supported by PwC Romania