Webcast ReviewsStimulating demand for BEVs in the UK and Europe: a complex challenge of cost, confidence and consistency
Auto Finance Sponsored by Auto Finance News Major hurdles persist on Europe’s road to zero-emission vehicles Published: 7th May 2025 Share Despite growing momentum toward zero-emission mobility, Europe still faces major challenges that could stall the transition to electric vehicles (EVs), according to a new quarterly report by Transport & Mobility Leuven (TML) for the European Automobile Manufacturers’ Association (ACEA). The report – part of an ongoing monitoring effort – presents the first set of key performance indicators (KPIs) to track the EU’s progress in shifting passenger cars and vans to zero-emission alternatives. It offers a detailed look at four critical enablers of the transition: electricity grid readiness, consumer adoption, charging infrastructure, and manufacturing capacity. While the EU has achieved some progress, the analysis reveals uneven development across these pillars, posing a threat to meeting the bloc’s ambitious climate and mobility goals. Key findings from the report: Electricity grid under pressure: The surge in EV adoption is placing increasing demands on Europe’s electricity grids. Many regions are not yet equipped to support the level of charging infrastructure needed, raising concerns about reliability and rollout speed. Consumer barriers remain high: Affordability and accessibility continue to hinder mass adoption. While model availability is improving, the total cost of ownership remains a major issue for middle- and low-income consumers, especially in emerging markets. Charging infrastructure lags behind: The distribution of public charging points is still highly uneven across member states. Urban hubs fare better, while rural and cross-border areas suffer from poor coverage, potentially limiting consumer confidence in EVs. Manufacturing bottlenecks and high energy costs: Battery production capacity remains insufficient to meet future demand. In addition, high and volatile energy prices continue to impact European competitiveness in EV manufacturing, potentially driving production outside the EU. Set against the backdrop of the EU’s Automotive Industrial Action Plan, the report underscores that coordinated policymaking, regulatory flexibility, and sustained public and private investment are essential to bridging the remaining gaps. The KPI-based approach will allow policymakers to respond more agilely to bottlenecks as they emerge. TML will release quarterly updates to track progress and help realign strategies with the realities on the ground. The full report is available to downland here. Lisa Laverick Editor - Asset Finance Connect Sign up to our newsletter Featured Stories NewsStellantis gains momentum in EU30 market NewsUK Auto Finance Insights – May NewsEuropean Auto Finance Insights – May Auto Finance