A new study suggests that maintaining the European Union’s 2025 carbon dioxide limits could boost EV sales by 450,000 units this year, according to research released jointly by E-Mobility Europe and New Automotive.
The report projects total EV sales could reach 2.4 million units in 2025 if current targets remain in place, compared to scenarios where the limits are relaxed. The findings come as several EU member states are calling for potential fines to be canceled preemptively.
“It’s critical that Europe’s 2025 CO2 limits remain in place to help pull electric vehicle sales upwards,” said Chris Heron, Secretary General of E-Mobility Europe. “They are necessary to keep a level playing field and to drive ecosystem investment in the face of intense global competition.”
The study indicates that achieving the previously agreed limits could generate €1.4 billion in fuel cost savings for European vehicle owners, with an additional €270 million in savings compared to relaxed scenarios. The environmental impact would amount to preventing 530,000 million tonnes of CO2 emissions.
European automakers are ramping up electric vehicle production ahead of the 2025 requirements, with seven new models planned below €25,000, despite market stagnation in 2024 following Germany’s subsidy removal.
The European Commission has committed to investigating “possible flexibilities” to maintain industry competitiveness. However, Ben Nelmes, CEO of New AutoMotive, emphasized that governments should first focus on boosting market demand before considering regulatory adjustments.
The research also suggests that maintaining current limits would support the EU’s charging infrastructure goals of 13 million charging points by year-end and provide stability for European battery investments.
