Europe lacks infrastructure for EV growth: ACEA

Europe is lacking the infrastructure and incentive to enable a transition to zero-carbon vehicles, according to a report launched at the Frankfurt Motor Show by the European Automobile Manufacturers' Association (ACEA).

The ACEA called for a new plan to facilitate the growth of electric vehicle (EVs) sales as Europe prepares for a new political term under the Presidency of Ursula von der Leyen. It said a major ramp-up of charging and refuelling infrastructure and purchase incentives were necessary to meet the EU's ambitious 2025 and 2030 carbon emission targets.

The report showed that just 2pc of all new cars in 2018 were fully electrically-chargeable, an increase from the 2014 market share of 0.6pc, but still only a small part of the market. Hybrid-electric vehicles (HEVs) made up 3.8pc of new car sales in 2018. Hydrogen fuel cell cars made up a negligible amount of EU car sales.

The lack of charging infrastructure remains the largest barrier to electrification.

Europe is falling short of the required number of charging stations, the report said, with only 144,000 charging points across the EU. The European Commission estimates the region requires 2.8mn charging stations by 2030.

Four countries — The Netherlands, Germany, France and the UK — account for 76pc of all EV charging points in the EU.

Affordability was also a barrier to EV growth. Countries with an EV market share of 1pc or less had a GDP per capita of below €29,000 ($31,900), while countries with a larger EV market share of 3.5pc or above had a GDP per capita above €42,000. Only 12 countries offer bonus payments or premiums to EV buyers and incentives vary greatly across the EU.

"Our industry is eager to move as fast as possible towards zero-emission mobility. But this transition is a shared responsibility,"ACEA president Carlos Tavares said. "From our side, we are offering an ever-growing choice of alternatively-powered cars to our customers. In parallel, governments across the EU need to match the increasing pace at which we are launching these cars by dramatically stepping up investments in infrastructure. Moreover, they also have to put in place sustainable purchase incentives that are consistent across the EU."

Some carmakers are launching new EV models in the coming years. Volkswagen showcased its flagship new electric hatchback the ID.3 at the Frankfurt motor show this week, which will be available in May 2020. The basic version will be under €30,000. PSA group, the owner of brands such as Peugeot, Vauxhall and Citroen, said it will launch 15 new EV models over the next two years.

EVs are forecast to be the largest consumer of battery metals such as cobalt and lithium in the coming years. By 2030, the demand for battery metals from EVs is set to overtake demand from the smartphone market.