According to reports from the European Automotive News, "By 2024, despite only slight overall market growth expected in Europe, the share of pure electric cars is set to increase from 14% in 2023 to 20%." Luca de Meo, Chairman of the European Automobile Manufacturers Association (ACEA) and CEO of Renault Group, recently stated that introducing affordable electric cars would help boost the market share of electric vehicles.
"We are trying to apply electric powertrains to more mainstream and core markets and introduce related products," said de Meo. For example, upcoming small electric cars like the Renault 5 and Volkswagen Group's future low-cost electric cars, equipped with smaller and more affordable batteries, will help reduce prices and consequently increase market demand. The Renault 5 is priced at around 25,000 euros, and Citroën and Renault are expected to launch models priced below 20,000 euros in the next two years.
Sigrid de Vries, Secretary-General of ACEA, stated that European total car sales in 2023 are estimated to be around 10.4 million units, a year-on-year increase of about 12%, exceeding the initial forecast of 5% growth; it is expected that car sales in 2024 will reach 10.7 million units, with a year-on-year growth of about 2.5%.
At the time of ACEA's above-mentioned forecast, global automakers are facing a slowdown in the growth of electric car sales due to the withdrawal of car subsidies by countries such as Germany, consumer reluctance to pay high prices, and the slow and uneven development of charging infrastructure.
In light of this, some car manufacturers have expressed skepticism about the commitment to "sell only electric cars before the EU's 2035 'ban on combustion engines.'" Carlos Tavares, CEO of Stellantis Group, recently stated, "If policies and public preferences tend to reduce the number of electric cars, we may change our strategy."
According to de Meo, the European automotive industry is still committed to achieving "zero carbon emissions," mainly through pure electric cars, and there may be a place for hydrogen fuel cell and synthetic fuel power systems in the future. "The development of electric cars will have ups and downs, but in the long run, there is no turning back."
In fact, ACEA has been advocating for the EU to establish "technology-neutral" emission regulations and has generally opposed certain provisions of the proposed new "Euro 7" regulations. ACEA claims that the cost of the proposed new Euro 7 regulations is too high, does not leave enough time for automakers, and even affects the ultimate goal of investing in "zero-emission" cars.
In recent months, regulatory agencies have made significant concessions to the "Euro 7" regulations. Currently, the "Euro 7" proposal is much weaker than initially envisioned, with the tailpipe emissions levels of most passenger cars remaining essentially unchanged from Euro 6.
