Electrification Accelerates in Europe, Driving Global New Energy Vehicle Industry

PostDate：2020-06-15

Affected by the epidemic, the state extended the subsidy policy of the new energy vehicles which still continued to decline, with sales of only 77,000 units. Looking back at the European market, sales of new energy vehicles in Europe were 568,600 in 2019, but in the first quarter of this year, the sales reached 228,600 units with an increase of more than 80 percent. In the long run, the development of new energy vehicles in Europe is bound to drive the growth of the global chain and market of new energy vehicle industry.

Get Your Custom Report Immediately:

https://www.globalmarketmonitor.com/request.php?type=3&rid=413868

European Subsidies Are Stronger Than China

The development gap between domestic and European new energy vehicles is obvious, mostly because of the different subsidies between the two. Although China has extended the original subsidy policy of new energy vehicles for two years, its actual subsidy intensity remains the same. when the outside world is affected by the epidemic situation, and the citizens are more cautious in investing large amounts of products than before. The delay in subsidy policy cannot once again make waves in the new energy vehicle market.

However, the European new energy subsidy policy continues to be strengthened. On May 19, the European Union proposed to include electric vehicles in the green economic recovery plan, which specifically includes four aspects. The first is to promote an energy vehicle procurement plan for 20 billion EURO in the next two years. The second is to establish an energy vehicle investment funds between 40 and 600 billion EURO. The third is to build 2 million public charging piles before 2025, and the last is to exempt zero-emission vehicles from VAT.

As we all know, European car VAT is pretty high. If the policy above is implemented, the price of many new energy vehicles may be lower than that of fuel vehicles, whose higher price-performance ratio will appear. The exemption of value-added tax has a significantly positive effect on the sales of new energy vehicles in the European market and stimulates the sales of new energy vehicles.

The Penetration Rate of New Energy Vehicles in Major European Countries Has Increased, But the Market Space Is Still Very Huge

Compared with May 2019, the penetration rate of new energy vehicle in Germany increased from 2 percent to 7.3percent, and the UK increased from 2% to 6.6%. The country with the highest penetration rate of electrification in Europe is Norway, whose penetration rate of new energy vehicles in 2020 is as high as 69.8 percent. Germany and France, the top two in terms of total new energy vehicle sales recently, have penetration rates of less than 10 percent, which shows that the European market of new energy vehicles still has broad room for development.

Fuel Cars Are Limited, Forcing New Energy Vehicles to Accelerate

The acceleration of new energy vehicles in Europe benefit from not only the increased subsidies but also the EU mid-term carbon emission targets for passenger cars, which will impose direct fines on fuel vehicles that exceed the standard.

Nearly in 2021, European car companies will accept huge fines without any change. Based on the carbon emission levels of various car companies in 2017, if Volkswagen will face a maximum fine of 9.2 billion EUROS in 2021.

The Electrification Process in Europe Is Accelerating, Promoting the Development of The Global New Energy Vehicle Industry

The acceleration of the European car electrification process has driven the development of the global new energy vehicle industry chain. The new energy vehicle markets in various countries continue to follow up. It is estimated that the sales of new energy vehicles in Europe will reach 2.72 million and 2.53 million in the domestic market in 2022.

null

The development of new energy vehicles will undoubtedly increase the demand for power batteries. CATL is the main power battery supplier in the global market, accounting for 24.5 percent of the global power battery installed capacity, which has dominated both domestic and abroad market.