Electric cars in Europe: why the market is slowing down and where it can grow

In recent months, the electric car market in Europe has shown what appears to be a slowdown, fueling doubts and concerns about the future of the automotive sector.

However, a thorough, evidence-based analysis, such as that of the Jacques Delors Centre in the report Europe's Car Industry in Transition of July 2025, shows that behind some common perceptions lie important opportunities and a more nuanced situation than is often believed. We have summarized them below.

Prices and policies: the main variables influencing demand

A popular belief is that demand for electric vehicles is stagnant due to consumer reticence. In reality, the report shows that potential demand is high, but still held back by two main factors:

• The purchase price: in 2024 the average cost of a BEV in the Eurozone was about 22 percent higher than an equivalent internal combustion vehicle. The European industry's focus on premium models has left the mass-market segment, critical for widespread deployment, empty.
• Regulatory uncertainty: ongoing changes and debates over European policies, with subsidies either shrinking or changing frequency, create a perception of instability that slows both investment and purchasing decisions.

In essence, it is not the demand that is lacking but the conditions to fully access it. Indeed, the most recent data confirms a recovery with BEV market share rising to 15.2 percent in the first quarter of 2025, up from 12 percent a year earlier.

Infrastructure and autonomy: tangible progress toward electric mobility

While range and the charging network are often cited as obstacles, the numbers tell an encouraging story of evolution:

• Between 2023 and 2024, total public charging capacity in Europe grew by 37 percent, outpacing the pace of growth in electric vehicle sales.
• By early 2025, there were about 934,000 public charging points available in the EU, of which at least 16 percent are fast chargersDC).
• The average range of BEV models sold in 2023 exceeded 430 km, a value that smoothly meets most daily uses.

These data show that the picture is rapidly improving, helping to dispel a significant portion of users' concerns.

Successful European experiences: France and Spain

The Italian automotive sector has gone through a significant manufacturing crisis over the past two decades, with a 62 percent contraction between 2000 and 2023. France and Spain have also experienced similar challenges, but as highlighted in the dossier, the two countries have responded by focusing on industrial strategies aimed at the electric transition:

• France: with its France 2030 initiative is creating a "Battery Valley" concentrated in the north of the country to attract gigafactories and promote battery production.
• Spain: is using funds from the National Recovery and Resilience Plan (NRP) to boost both domestic demand and strategic investments, attracting large producers.

These models demonstrate the importance of a coordinated strategy to regenerate manufacturing districts, a valuable cue for Italy in designing its industrial future.

Global competition: the approach of Chinese manufacturers in Europe

While there is growing concern about the massive entry of Chinese manufacturers, their approach shows a strategy geared more toward quality and margin sustainability than low price competition:

• Chinese brands tend to position themselves with prices aligned with the European market, often double those charged in China.
• They offer models with advanced technologies even on basic ranges, aiming to strengthen qualitative reputation.
• Many have already begun manufacturing in Europe (e.g., BYD in Hungary, Chery in Spain), thus integrating into the market and circumventing potential trade barriers.

This dynamic underscores the importance of focusing on innovation and investment to maintain competitiveness.

Jobs and innovation: the new opportunities in the electric transition

Industrial reconversion implies a change in the workforce, but also new possibilities:

• While some traditional roles related to combustion engines are likely to shrink, the production of electric vehicles and especially batteries creates new demand for specialized skills.
• Labor intensity for the production of BEV components is often higher than for traditional engines, thus representing an opportunity for employment, provided investment in training and retraining.

Toward a sustainable and competitive future

The Jacques Delors Centre report clearly suggests that Europe, and Italy in particular, has the opportunity to successfully lead the transition to electric mobility, provided:

• The regulatory framework is stable and consistent, capable of instilling confidence in consumers and investors.
• BEV offerings become more accessible and meet the needs of the mass market.
• Coordinated investment should be made in strategic supply chains, from battery production to recycling, creating new skilled professionals.

The European automotive industry has solid starting points to renew itself and remain at the forefront of the global landscape, but a shared vision and commitment is needed.

You can read and download the report by clicking here.

About Powy

Powy a company that owns, develops, and manages Italy's leading independent network of public charging infrastructure for electric vehicles.

Founded in Turin, Italy in 2018, Powy is at the center of the transition to more sustainable mobility, offering an innovative charging infrastructure that uses only 100 percent renewable energy.

Powy 's network includes quick, fast, and ultra-fast charging solutions strategically placed in public and private parking lots, supermarkets, shopping malls, and transportation hubs to ensure maximum convenience and accessibility for EV drivers. Each station is equipped with advanced technologies to provide a reliable and efficient charging experience.

Learn more: wpowy.energy