Many EU member states, particularly in Central and Eastern Europe, have low adoption rates of BEV and plug-in hybrids. Figure 3 illustrates that BEVs and hybrid vehicles in more than half of the EU’s member states each accounted for less than 10% of total passenger fleets in 2022, with Slovakia, Czechia, Poland, Cyprus, and Estonia at the bottom.

While the European Council and Parliament set bloc-wide policies and strategies, each member state has its own policy framework to support the EV industry and adoption. This leads to a fragmented and inconsistent landscape of incentives, regulations, and infrastructure across the EU, which affects the level of EV adoption in different countries⁵. For example:⁶

Incentives

EV subsidies program in countries such as Germany, France, Italy, Austria, and Hungary
Tax exemption and/or reduction for EV ownership in countries such as Austria, Bulgaria, Germany, Italy, Portugal, Romania, Slovakia, and Sweden
Charging infrastructure support provided in countries such as Italy, Spain, and Sweden
Excise duties on fossil fuels in countries such as Italy, France, Finland, and Sweden

Disincentives

Fossil fuel subsidies in countries such as Portugal, Greece, Cyprus, and Hungary⁷
Limited EV charging infrastructure in countries such as Romania, Poland, Malta, Bulgaria, and Croatia⁸

To facilitate the transition to low-carbon mobility, the EU should consider the diverse needs and situations of its members and provide them with tailored assistance and guidance. The EU should foster cross-border cooperation and coordination on EV policies and standards, and invest in research and innovation to enhance its own EV industry's competitiveness and quality. This would help the EU achieve its climate goals and maintain a fair and balanced trade relationship with China and the rest of the world. The EU should also take into account the substantial manufacturing employment generated by the automotive sector, both directly and indirectly, and develop policies to support labor transition for workers affected by the trend toward vehicle electrification.⁹