Europe’s adoption of Zero-Emission Vehicles (ZEV) is moving more slowly than anticipated, with debates now emerging about whether more can be done by policymakers in Brussels to turbocharge the market.
The market share of Battery Electric Vehicles (BEV) is less than 16% percent, and for vans, it’s less than 9%, raising the question of how to get to 100% in less than nine years as mandated by EU targets.
“The pace set by the regulator in the first place was probably over ambitious, over optimistic, and the current market realities and geopolitical and economic realities just do not match this pace”, said Maria Linkova-Nijs, executive head of policy and strategy at the European Automobile Manufacturers’ Association, ACEA. She was speaking at an event held at Euractiv on October 16, 2025.
Enabling conditions
Many industry players point towards improving the so-called “enabling conditions” in order to support mass-market uptake, one of them being charging infrastructure.
But the European Commission celebrated meeting its 2025 target of one million public charging points across the bloc as part of the EU Mobility Strategy.
Edoardo Turano, a head of unit at the European Commission’s climate action directorate, also participated in the event and blamed an initial lack of supply of ZEVs from carmakers for the slower uptake.
“It was really a lack of supply because the zero-emission vehicle models were concentrated in the very upper segment, which, of course, comes with a price tag that not everyone can afford. And what is happening now is that this is shifting towards also the medium and smaller segments,” said Turano.
Stimulating demand
He believes that the effects of the EU’s CO2 emissions reduction targets, which started to apply in 2020, have created momentum in the right direction.
“When it comes to stimulating demand, it’s about making sure that these vehicles become more affordable, and this is what the industry needs,” said Turano. “The volumes are what determine the profit margins that are also needed for investments.”
Norway is not in the European Union, but as a closely aligned neighbour, it has had huge success in ZEV adoption. The country is on track to hit its 2025 target of 100% of all new car purchases being ZEVs – it was 98% in September.
Sveinung Kvalø, senior advisor at the Norwegian EV Association, told the audience, “We have a two-part policy. One is a revenue part, which is to tax fossil cars – you put taxes on what you don’t want, which is fossil cars.”
“And the other is the subsidy part, which is costly for the government, which is a VAT exemption (for ZEVs) here in Norway.”
The Norwegian government is now planning to phase out that VAT exemption, but the country can already claim the world’s fastest uptake of ZEVs.
Geographical adoption
One of the main concerns for the industry is the unfair geographical adoption of ZEVs across the EU.
Countries like Finland, Norway, Belgium, the Netherlands, Luxembourg, have a market share of battery electric vehicles from 30-90%, while France, Germany, Portugal, and Austria have an electrification rate between 18-23%, and then countries in Central and Eastern Europe see uptake below 10%.
“What we see is a ‘Europe of three speeds’—uptake mirrors GDP, with wealthier nations leading,” said Maria Linkova-Nijs from ACEA.
One of the big sticking points is the interplay between EU laws and national policies.
For Stefan van Zyl, international policy coordinator for sustainable logistics at the Dutch ministry of infrastructure and water management, the blend of EU direction and national action is crucial.
“European measures set the bar – but it is national initiatives that make the transition possible,” explained van Zyl. “In the Netherlands, we combine zero-emission zones and toll schemes with a refund system that channels funds directly back to logistics for ZEV investments.”
He also flagged bottlenecks: “You need to plan early on infrastructure, because grid congestion isn’t just a transport problem, it’s the result of wider electrification.”
Trucks, a numbers game
The discussion isn’t only about cars, however, and that’s why Christoph Wolff, CEO of the Smart Freight Center provided an additional angle to the debate.
“Carriers only invest if the total cost of ownership (TCO) works for them. It’s a numbers game for trucks,” said Wolf.
“20-30% of the market is close to TCO parity,” he said, meaning buying a ZEV works out to be the same price as a fossil fuel equivalent over the course of the vehicle’s lifespan.
“This isn’t uniform,” continued Wolff. “You have to be nimble and data-driven, focus on clusters and specific use cases. Decarbonising freight is a team sport—aggregating demand creates critical mass and confidence to invest.”
The European Commission is set to revise CO2 standards this year, with stakeholders eager for clarity on what new targets, timelines, and technology options will be in place for carmakers after 2030.
Until then, the focus for all concerned will be speeding up the adoption of ZEVs across the whole of the EU.
This article follows the policy debate “Zero-Emission Vehicles – Accelerating demand across Europe”, supported by ACEA.
(BM)
