EV sales: Europe split in two

Despite an increasingly wide range of electric vehicles on offer and ambitious climate targets, the electric vehicle market remains profoundly unbalanced in Europe. Between the countries of the North, which have already entered the all-electric era, and the South-East, which is struggling to keep up, the transition is progressing at very different rates. This disparity calls into question both public policy and Europe’s industrial strategy.

Adoption varies greatly from region to region

On the face of it, sales of electric vehicles continue to grow in Europe. But behind this overall dynamic lies a much more fragmented reality. The continent is now divided between mature markets and others where electric vehicles remain marginal. In Northern and Western Europe, the electric vehicle has established itself as a credible, if not dominant, alternative. In the South and East, it is still often perceived as an expensive, restrictive product reserved for a minority. This structural gap is widening as some countries accelerate while others stagnate.

Norway remains by far the most spectacular case. In the first seven months of 2025, almost 94% of new car registrations in Norway were electric. This is an unprecedented level, made possible by a policy that has been consistently pursued for over a decade. Generous subsidies, ultra-favourable taxation, user benefits and a dense recharging network have gradually removed the barriers to adoption. The country has also used revenues from its sovereign oil fund to finance this transition. Electric cars are now the norm, even if growth is tending to slow as the market stabilises.

The South and East still lagging behind

At the other end of the spectrum, Southern and Eastern Europe are struggling to get the momentum going. In Croatia, for example, electric vehicles account for barely 1% of sales. This figure reflects not so much a rejection of the technology as a set of economic and practical constraints. The purchase price remains the main obstacle, in regions where purchasing power is more limited. Added to this is a shortage of recharging infrastructure, often concentrated in major cities, leaving vast areas with little or no coverage.

This delay comes at a time when the European Union is partially reviewing its plans. Faced with demand that is less buoyant than expected, Brussels has begun to relax some of the intermediate targets linked to the end of combustion by 2035, under pressure from carmakers. They are calling for more time to adapt their industrial facilities and secure their margins. For many players, regulatory stability is essential to speed up the transition.

Subsidies, terminals and the industrial battle

Where governments have invested massively in charging points and offered clear incentives, market share has taken off. Elsewhere, electric cars remain confined to low levels, often limited to a few percent. Another factor complicating the equation is the rise of Chinese manufacturers. Highly competitive on price, they benefit indirectly from European subsidies, sometimes to the detriment of local brands. Europe could find itself lagging behind technologically and dependent industrially. More than just an automotive issue, the electric vehicle reveals Europe’s economic and political fractures. Without a more homogeneous strategy, there is a risk that the transition will reinforce a two-speed Europe, where it should embody a common project.