Demand for all-electric vehicles in the EU surges 3x in 2021
European consumers are increasingly turning to electric vehicles as focus turns to the industry. Several initiatives from governments are inspiring the demand from consumers.
According to data acquired by Finbold, the demand for new passenger battery electric (all-electric) vehicles across Europe surged 231.58% between Q2 2020 and Q2 2021, from 63,422 to 210,298. The figures reflect a triple growth in demand for all-electric vehicles.
Elsewhere, demand for the hybrid electric vehicle also spiked by 213.54% to 541,162 representing the biggest growth for all new passenger vehicles in Europe. In total, the electric vehicle registration as of Q2 2021 stands at 751,460, a growth of at least three times from the Q2 2020 cumulative figure of 236,015.
During the period, plug-in hybrid vehicle demand surged 255.8%, from 66,252 to 235,730. Natural gas vehicles recorded demand of 41.84% from 9,515 to 13,497.
Furthermore, during the first half of 2021, battery electric vehicles recorded a share of 6.7% under new passenger cars by fuel type in the region. Hybrid electric vehicles had a share of 18.9%, while plug-in hybrids stood at 8.3%. Petrol accounted for the highest share at 42%, followed by diesel at 21.7%. Natural gas had a share of 0.5%.
Government incentives spurs EV demand
The report explains how different government policies contributed to the surge in demand for electric vehicles in Europe. According to the research report:
“For instance, when the coronavirus pandemic hit, most governments across the region focused their stimulus packages on companies that are operating in line with fighting climate change. Notably, a big part of the support focused on incentives for consumers to buy EVs, creating a surge in demand.”
Additionally, the demand emerged at a period, the electric vehicle industry suffered a chip shortage due to supply chain constraints due to the pandemic. However, the full impact will manifest later this year.