The adoption of plug-in electric vehicles in Europe is actively supported by the European Union and several national, provincial, and local governments in Europe. A variety of policies have been established to provide direct financial support to consumers and manufacturers; non-monetary incentives; subsidies for the deployment of charging infrastructure; and long term regulations with specific targets. In particular, the EU regulation that set the mandatory targets for average fleet emissions for new cars has been effective in contributing to the successful uptake of plug-in cars in recent years
Europe had about 5.6 million plug-in electric passenger cars and light commercial vehicles on the road at the end of 2021. The European stock of plug-in cars is the world's second largest after China, accounting for about 32% of the global stock in 2021.
Europe also has the world's second largest light commercial electric vehicle stock, 33% of the global fleet in 2020, , France listed as the European country with the largest stock of light-duty all-electric utility vans, with about 62,000 units, followed by Germany (29,500), and the UK (almost 15,000). Select Historical: "EV stock" or "EV sales" + Transport mode: "Vans" + Region: select the desire country.
The plug-in passenger car segment had a market share of 1.3% of new car registrations in 2016, rose to 3.6% in 2019, and achieved 11.4% in 2020. Despite the segment's rapid growth, , only 1% of all passenger cars on European roads were plug-in electric.
, Germany led cumulative sales in Europe with 1.38 million plug-in cars registered since 2010, followed by France (786,274), the UK (~745,000), Overall in 2021, there were more than 190,000 sales of BEVs in the UK, with over 114,000 sales of PHEVs. Plug-in vehicles represented 18.6% of market share in 2021. Norway (647,000), Click on the tab "Elbil" for the stock of electric cars and "Ladbar hybrid" for the stock of plug-in hybrids. , the stock of registered light-duty plug-in electric vehicles totaled 647,000 units, consisting of 470,309 battery electric vehicles and 176,691 plug-in hybrids. and the Netherlands (390,454). , there were 390,454 highway-legal light-duty plug-in electric vehicles in use in the Netherlands, consisting of 137,663 fully electric cars, 243,664 plug-in hybrid cars and 9,127 light duty plug-in commercial vehicles. Plug-in passenger cars represented 4.33% of all cars on Dutch roads at the end of 2021. The market share of the plug-in passenger car segment was 29.8% in 2021. Source includes figures from 2016 to 2021. Note: an improved methodology was introduced beginning January 2021. Some numbers in this new version are different than statistics published before in the old format. Norway has the highest market penetration per capita in the world, also has achieved the world's largest plug-in segment market share of new car sales, 86.2% in 2020, and 22% of all passenger cars on Norwegian roads were plug-ins by the end of 2021. See graph under "Personbilbestanden i Norge fordelt på drivstoff" - , there were 15.95% all-electric cars and 6.18% plug-in hybrid cars in use on Norwegian roads. Combined plug-in electric passenger cars represented 22.13% of all passenger cars in circulation in the country. Germany was the top selling European country market in terms of annual volume from 2019 to 2023, but was overtaken by the UK in 2024.
In 2020, and despite the strong decline in global car sales brought by the COVID-19 pandemic, annual sales of plug-in passenger cars in Europe surpassed the 1 million mark for the first time. Also, Europe outsold China in 2020 as the world's largest plug-in passenger car market for the first time since 2015."Punished" explosive growth, European new energy vehicle sales surpassed China for the first time
Government incentives and policies
The European Union and several national, provincial, and local governments around Europe have introduced policies to support the mass market adoption of plug-in electric vehicles. A variety of policies have been established to provide direct financial support to consumers and manufacturers; non-monetary incentives; subsidies for the deployment of charging infrastructure; procurement of electric vehicle for government fleets; and long term regulations with specific targets.
Financial incentives
Financial incentives for consumers aim to make plug-in electric car purchase price competitive with conventional cars due to the still higher up front cost of electric vehicles. Among the financial incentives there are one-time purchase incentives such as tax credits, purchase grants, exemptions from import duties, and other fiscal incentives; exemptions from road, bridge and tunnel tolls, and from congestion pricing fees; and exemption of registration and annual use vehicle fees. There are also several non-monetary incentives such as allowing plug-in vehicles access to bus lanes, free parking and free charging.
, tax benefits and incentives for electrically chargeable passenger cars were available in 24 out of the then 28 European Union member states. Nevertheless, only 12 member states offered bonus or grant payments as purchase incentives, and most countries only grant tax reductions or exemptions for all-electric cars. Croatia, Estonia, Lithuania, and Poland offered no incentives.
French bonus–malus
France introduced in 2008 a bonus–malus based tax system that penalize fossil-fuel vehicle sales. This a revenue-neutral policy mechanism allows to balance government support with direct revenues from the taxes collected from sale of particularly polluting and/or greenhouse gas emitting cars. The bonus applies to private and company vehicles purchased on or after 5 December 2007, and is deducted from the purchase price of the vehicle. The malus penalty applies to all vehicles registered after 1 January 2008, and is added at the time of registration. See Chapter 3 - Car Registration Tax ('Bonus-Malus' system) in France pp. 15-21.
EU average fleet emissions
European Union Directive No 443/2009 set a mandatory average fleet emissions target for new cars, after a voluntary commitment made in 1998 by the auto industry had failed to reduce emissions by 2007. The regulation applies to new passenger cars registered in the European Union and EEA member states for the first time. A carmaker who fails to comply has to pay an "excess emissions premium" for each vehicle registered according with the amount of g/km of exceeded.
The 2009 regulation set a 2015 target of 130 g/km for the fleet average for new passenger cars. A similar set of regulations for light commercial vehicles was set in 2011, with an emissions target of 175 g/km for 2017. Both targets were met several years in advance. A second set of regulations, passed in 2014, established a new target of average emissions of new cars to fall to 95 g/km, scheduled to be phased-in in 2020 (95%), and fully apply from 2021 onward. The target for light-commercial vehicles was set to 147 g/km by 2020.
In April 2019, Regulation (EU) 2019/631 was adopted, which introduced emission performance standards for new passenger cars and new light commercial vehicles for 2025 and 2030. The new Regulation went into force on 1 January 2020, and has replaced and repealed Regulation (EC) 443/2009 and (EU) No 510/2011. The 2019 Regulation set new emission targets relative to a 2021 baseline, with a reduction of the average emissions from new cars by 15% in 2025 (81 g/km), and by 37.5% in 2030 (59 g/km). For light-commercial vehicles the new targets are a 15% reduction for 2025 and a 31% reduction for 2030.
The 2019 Regulation also introduced an incentive mechanism or credit system from 2025 onwards for zero- and low-emission vehicles (ZLEVs). A ZLEV is defined as a passenger car or a commercial van with emissions between 0 and 50 g/km. The regulation set ZLEV sales targets of 15% for 2025 and 35% for 2030, and manufacturers have some flexibility in how they achieve those targets. Carmakers that outperform the ZLEV sales targets will be rewarded with higher emission targets, but the target relaxation is capped at a maximum 5% to safeguard the integrity of the regulation.
Since 2018, European carmakers have been fully embracing electrification of their car models to further reduce emissions, and comply with the targets established by the EU. The EU regulations have resulted in a significant growth of sales of plug-in electric cars since 2019.
In 2020, despite a strong decline of overall car sales in all countries as a result of the COVID-19 pandemic, the plug-in car segment has increased significantly its market share. According to the European Automobile Manufacturers Association (ACEA), during the first quarter of 2020, and due to the COVID‐19 outbreak, the market share of new passenger plug-in electric cars in the 27 EU countries was 6.8%, up from 2.5% in the same period in 2018. In April 2020 the European plug-in market share rose to 11%. The European plug-in segment market share was 11% in April 2020, raising the market share to share to a record 7.8% for the first four months of 2020.
Norwegian case
In order to reduce Norway's greenhouse gas emissions, its government pledged in 2012, among other measures, a target for the average fleet emission rate of new passenger cars of 85 g/km by 2020, 10 g/km lower than the European Commission's targets for 2021.
As a result of its fast growing EV market penetration, average fleet emissions have been falling in Norway every year. Norway achieved in 2016 the European target set for 2021, with average emissions for all new passenger cars registered in 2016 of 93 g/km, down 7 g/km from 2015. Average emissions for all new passenger cars registered in 2017 was 82 g/km, down from 93 g/km in 2016, and below the government's target of 85 grams set for 2020. Norway achieved its transportation emissions target three years before the pledged deadline.
Annual average new passenger car fleet emissions reached an all-time low in 2019 with 60 g/km, 11 g/km lower than in 2018. Nevertheless, the average for gasoline-powered cars declined only 1 g/km from 2018 to 93 g/km, while diesel-powered cars increase their average emissions from 131 g/km in 2018 to 134 g/km in 2019. The net gain in the overall reduction of average fleet emissions is the result of the large market share of 42.4% achieved by the all-electric segment in 2019.
Phase-out of fossil fuel vehicles
+ Timeline of national targetsfor full ICE phase out or100% ZEV car salesSelected countries YearNorway (100% ZEV sales) 2025Denmark 2030IcelandIrelandNetherlands (100% ZEV sales)SwedenUnited KingdomFrance 2040Germany (100% ZEV sales) 2050
Several European governments have made long term pledges with compliance targets within a specific timeframe such as ZEV mandates and the phase out of internal combustion engine vehicle sales. For example, Norway set a national goal that all new car sales by 2025 should be zero emission vehicles (electric or hydrogen).
Some cities are planning to establish a partial or total ban on internal combustion engine vehicles or to implement zero-emission zones (ZEZ) restricting traffic access into an urban cordon area or city center where only zero-emission vehicles (ZEVs) are allowed access. In such areas, all internal combustion engine vehicles are banned.
, cities planning to gradually introduce ZEZ, or a partial or total ban fossil fuel powered vehicles include, among others, Amsterdam (2030), Athens (2025), Barcelona (2030), Brussels (2030/2035), Copenhagen (2030), London (2020/2025), Madrid (2025), Milan (2030), Oslo (2024/2030), Oxford (2021–2035), Paris (2024/2030), and Rome (2024/2030).
Other policies