EV sales in Europe set to grow, but ecosystem only starting to take shape

Electric vehicles (EVs) and the ecosystem that supports them have reshaped the auto industry in Europe in the past decade and opened the way for a fleet of new mobility products and services. EVs accounted for around 24% of new car sales in Europe last year and volumes look set to rise in 2026. But the route ahead is far from clear.

“We've got past the early adopters’ phase of the transition. But we're still in what is often called the early majority segment,” says Amelia Bradley, Associate Partner at consulting firm Corporate Value Associates (CVA). (20:20)

“Appetite has increased. Acceptance has increased. People who are pragmatic are now willing to take electric vehicles. However, there's still a fragile sentiment in terms of trusting the product and trusting the promise of the product.” (20:34)

Bradley was speaking at an online event hosted by the Qorus Mobility Community and CVA. Speakers from CVA as well as representatives from Hyundai Capital Bank and vehicle leasing group Ayvens discussed the state of Europe’s EV ecosystem and the forces changing it. 

Key takeaways:

• The market for EVs in Europe has passed the early adopters’ phase but is still fragile.
• EVs will likely come to dominate the European vehicle market, but regulatory policy remains the primary factor governing the pace of adoption. 
• CVA has identified seven drivers that will shape the EV market and ecosystem: regulation, Chinese OEMs, software defined vehicles and smart EVs, BEV asset management, battery TCO, EV charging infrastructure, and customer acceptance. 
• The rising importance of software in EVs will further disrupt the EV ecosystem.
• BEV owners need to employ new tools and strategies, such as multicycle usership, to better manage their assets. 
• Ecosystems that address battery health, repair, replacement, and reuse have been slow to emerge but will become increasingly important. 
  
  

Check out the event highlights