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Electromobility strategies of automobile manufacturers in Europe 2020–2025

Electromobility strategies of automobile manufacturers in Europe 2020–2025

In the midst of a far-reaching structural change in the automotive industry and a sales crisis exacerbated by the corona pandemic, e-mobility is picking up speed on European roads. While the passenger car market is shrinking overall, new registrations of fully electric cars (BEV) in Europe will grow by more than 30 percent in the first half of 2020. This increases the BEV share in this market from 1.9 to 3.9 percent. What effects does this trend have on automobile manufacturers producing in Europe? What concrete numbers of e-vehicles can be expected by 2025? And what challenges do suppliers have to face in this process? Answers to these and other questions are provided by the study “Electromobility – Strategies of OEMs – Developments in Europe 2020–2025”, prepared by the Chemnitz Automotive Institute CATI in cooperation with the branch networks of automotive suppliers Sachsen AMZ and automotive thuringia at.

AMZ members have received the details of the study in advance with the exclusive membership magazine AUTO.ZOOM and are welcome to contact Ms. Reppe at reppe@amz-sachsen.de request. Non-members can request the entire study for € 489.00 plus VAT with the PDF order form a> for sale. 

First detailed analysis of the production of e-vehicles in Europe

With this analysis, detailed information is available for the first time on the development of locations and production volumes for electrified cars and light commercial vehicles in Europe up to the year 2025. “We are currently observing a ramp-up in e-mobility, which is still taking place with the handbrake on. However, according to our investigations, this will resolve itself in the next two years. Manufacturers urgently need the electric boom in order to meet the targets for CO2 emissions and avoid fines. However, they also failed to initiate appropriate product developments in good time and to force the provision of production capacities, so that there are currently long delivery times for both fully electric cars and plug-in hybrids, ”explains Prof. Dr. Werner Olle, member of the board of directors of the Chemnitz Automotive Institute CATI. The institute is a division of TUCed – An-Institut for Transfer and Further Education GmbH.

E-car production will increase significantly by 2025

The research and evaluation of company-related data by CATI showed that in 2019 276,500 fully electric cars were produced in Europe at 17 locations in eight countries – including six in Germany. According to the study, the BEV production plants are expected to double by 2022 to over 35 locations in at least eleven European countries and more than quadruple the number of electric cars produced there compared to 2019. The study forecasts production of 1.2 million fully electric vehicles in Europe for 2022, and over two million units for 2025.

Germany – hotspot for e-vehicle production

Germany is developing into a hotspot here. In 2019, Germany was the largest European sales market for fully electric cars for the first time, just ahead of significantly smaller markets such as the Netherlands and Norway. In 2020, Germany will overtake France as a BEV production location for the first time. This development, which has only recently begun, will continue to gain momentum until 2025, according to the authors of the study. They have calculated that the annual production of electric cars in Germany will increase almost eightfold from 2019 to 2022 to around 600,000 vehicles and will continue to rise to over 1.1 million BEVs by 2025. A good 50 percent of all fully electric cars manufactured in Europe will then be produced at German locations.

With regard to the drive portfolio in electromobility, many automobile manufacturers are modifying previous strategies and opening up to the mix of BEV and PHEV models in different forms. According to the study, they do not see any large-scale production prospects in this decade for fuel cell vehicles in the passenger car sector. Exceptions are Toyota and especially Hyundai. “These developments indicate that the ongoing market uncertainties with regard to future drive technologies are causing automobile manufacturers to diversify their drive strategies more and more. Politicians should set ambitious milestones derived from overarching goals, but should not want to specify technologies to achieve them, ”emphasizes Prof. Olle.

Opportunities in the light commercial vehicle segment

Reductions in CO2 limits in Europe also apply to light commercial vehicles (Light Commercial Vehicles LCV up to 3.5 t). Electric vehicles are therefore also gaining in importance in this segment. Their production takes place in significantly lower numbers than is the case with cars, mainly from specialized providers. Traditional automobile manufacturers have so far largely not been able to tap into this market from their own series production. According to CATI evaluations, fully electric LCVs were manufactured at nine European OEM locations at the end of 2019. The OEMs are only now starting to take this segment into account in their e-strategies. “Start-ups that offer light electric vans have already found this gap. We see a niche market with potential here, in which traditional suppliers can also gain a place and develop the topic of new mobility for themselves, ”says AMZ network manager Dirk Vogel, referring to opportunities for Saxon companies.

You can find a short version of the study here.

AMZ members have received the details of the study in advance with the exclusive membership magazine AUTO.ZOOM and are welcome to contact Ms. Reppe at reppe@amz-sachsen.de request. Non-members can request the entire study for € 489.00 plus VAT with the PDF order form a> for sale.