European electric car sales to rebound next year

The market share for electric cars in Europe should rebound strongly in 2025 as limits on emissions get stricter and manufacturers propose cheaper models, a study released Tuesday said.

Electric vehicles will represent as much as 24% of new cars sold in Europe next year, according to a report by think tank Transport & Environment (T&E).

"EV sales are expected to rise to 24% market share in 2025, supported by an expansion of mass market EV offerings," the report said.

After three years of growth, EV sales slipped in 2024 and represented just 14% of new car sales in Europe in the first half of this year.

Higher sales in the Netherlands, Spain and Italy have not made up for a decline in Germany, Europe's largest market, after a surprise cut to public subsidies there.

But a slew of new, more affordable models expected in 2025, should boost sales throughout the region, T&E said.

A study presented on September 11 by BMI Research (a firm associated with Fitch) also forecast strong sales growth for EVs in Europe, driven by purchases by corporate fleets and long-term rental companies.