This year, we were once again media partners of EVision, the event organized by Eurelectric (the European federation of the electric industry) dedicated to electric mobility and its evolution.
The theme of this year’s edition was “Accelerating e-Mobility,” featuring panels focused on how to encourage the widespread adoption of battery-powered vehicles across Europe. While Denmark no longer faces major challenges—just like Norway and Sweden—the rest of Europe is still struggling, with growth falling short of expectations.
Scandinavia leading the transition
The Old Continent is today the second-largest electric car market in the world, second only to China, with a share of 25% of the total, which is starting to become interesting. This, despite a particularly difficult 2024, which saw weaker growth compared to other years, mainly due to problems in Germany. Berlin, as we know, represents the main automotive market of the continent, which is why slowdowns in sales in the country can mean general slowdowns.
In 2025, however, it is expected that electric car sales will increase again, thanks to a broader entry-level offering that is slowly bringing the prices of battery-powered vehicles, at least those in the A-segment, to levels increasingly within reach of most users, especially in Italy. The chart in the picture clearly shows the situation of the market change in just a few years, and between 2025 and 2027, price lists will drop further with the arrival of particularly awaited models, almost all produced in Europe, including the Renault Twingo, the successor to the Dacia Spring, the BYD Seagull, and the Volkswagen ID.1, the latter expected in 2027 with a starting price of €20,000.
The countries with the highest penetration of electric vehicles are confirmed to be the Scandinavian ones: Norway represents a unique case worldwide in this regard, followed by Sweden and Denmark, which continues month after month to set new records, as well as the Netherlands and Belgium. Among the “big” countries, the United Kingdom and France show the greatest growth, followed closely by Germany, which, however, as we know, has seen a slight decline.
Below 15%, however, are the Mediterranean countries: Spain, however, has long surpassed Italy, with a market share that continues to rise slightly, while in Italy, it remains steady at around 4%.
In short, growth is happening, but below expectations. And what is slowing it down is a sudden increase in energy demand and its costs. In the last 50 years, electricity demand has increased by 500 TWh, reaching 2,500 TWh, and in the next 25 years, according to EY and Eurelectric, the growth rate will be four times faster, with an estimated demand of over 4,500 TWh by 2050. More and more “energy flexibility” will be needed, and from all the EVision panels, it emerges that the solution, if the goal is, as it seems, to make the entire fleet electric, is bidirectional charging or Vehicle-to-Grid.
The Norwegian example
Norway is currently the only market where not only are almost all new car sales electric, but the total vehicle fleet now has more electric cars than internal combustion ones—a historic milestone reached between August and September 2024.
What is the key to this success? Jon-Ivar Nygård, Norway’s Minister of Transport and Agriculture, explains:
The transport sector is a major contributor to emissions, but we have seen numerous examples demonstrating that the green transition is possible—with the right incentives. Norway leads the world in the transition to zero-emission road transport. For several years now, the best-selling passenger cars in Norway have been battery-electric models. In 2024, nearly 90% of all new passenger cars sold were fully electric, and today, more than 28% of our passenger car fleet runs on electricity. Incentives work. Norway introduced a comprehensive package of EV incentives as early as the 1990s, including tax breaks and usage benefits, to compensate for the immaturity of the technology at the time. These tax benefits have been the key driver of adoption. Traditionally, fossil-fuel-powered cars in Norway have been subject to high taxation, both for purchase and use, which has made EVs more attractive in comparison.
This type of “incentive,” different from the bonuses and discounts used in Germany, France, or Italy, is actually a tax exemption, similar to what happens in Denmark. Both countries impose particularly high taxes on cars, and in Norway, they have always been considered luxury goods. But for the past 30 years, not electric ones.
EVs have historically been exempt from value-added tax (VAT), but a VAT rate has now been introduced for the portion of a car’s purchase price exceeding 500,000 NOK. Additionally, electric vehicles remain exempt from both registration tax and re-registration tax. Today, EV owners benefit from reduced toll fees, and local authorities can grant access to bus lanes and discounted parking rates. However, the success of Norway’s EV transition has not come without costs. This year alone, government expenditure due to tax exemptions, VAT reductions, toll discounts, and ferry subsidies is estimated to reach nearly 50 billion NOK. In most vehicle segments, EV technology is now competitive, and operational costs are lower than those of fossil-fuel-powered cars. While incentives have remained stable for a long time, there is a broad consensus that, given their financial impact, they will need to be gradually adjusted as battery costs continue to decline and more models enter the market.
For this reason, Norway has moved even further. With no more concerns about passenger cars, the focus has shifted to modes of transport that have a much greater impact than cars but are also more challenging to convert (we’ll discuss this shortly).
The Norwegian government is now shifting its focus beyond passenger vehicles, targeting the electrification of heavy-duty transport, maritime shipping, and construction machinery. Accelerating the transition to zero-emission technology in these sectors is the next major challenge. For decades, incentives for electromobility have been central to our strategy, and they have proven successful. Now, we are looking ahead to a future where many of these incentives will no longer be necessary. However, for this to happen across the entire transport sector, technology must continue to advance – Nygård concludes.
Tzitzikostas (EU): “Automotive is crucial for us”
Good morning, everyone. It’s a really nice place, don’t you think? Especially the Lamborghini area over there… Let’s see how we’ll manage to electrify those beasts one day!” With these words, Apostolos Tzitzikostas, European Commissioner for Sustainable Transport & Tourism opens the second day of EVision, commenting on the event’s location, the Autoworld in Brussels. “This conference is taking place at the perfect moment. When you chose the date for EVision 25, you couldn’t have known (even I didn’t know) that it would coincide with the launch of our industrial plan for the automotive sector. But since that’s the case, this is a great opportunity to present it to you. Yesterday, I presented it to the College, which approved it, and now I want to share it with you,” the commissioner continues.
He begins by stating that Europeans need “more competitive, sustainable, resilient, smart, and safe” transportation because, he adds, “the new geopolitical situation demands it.” This is certainly a reference to the declining solidity—and perhaps credibility—of the U.S. as an ally, which, under Trump’s administration, has taken a much more aggressive approach to neo-protectionism, aiming to impose 25% tariffs even on European products, including cars. However, the reference also seems to point to an EU that has finally woken up, realizing more than ever the issues posed by the dominance of American big tech in Europe, particularly in terms of security and cybersecurity. Once again, this includes the automotive sector.
That Brussels has realized the technological lag of European car manufacturers is now well known, as demonstrated by the action plan itself, created to support a deeply struggling sector deemed crucial. Looking at the numbers, the automotive industry contributes 7% to the EU’s GDP (with significantly higher percentages in some individual countries, including Sweden, Spain, and of course Italy, Germany, France, and Austria), generates a trade surplus of over €100 billion, and directly and indirectly employs 14 million people. However, according to the Commissioner, road transport still accounts for 73% of transport-related emissions. “I’m sure you’ll agree with me that this figure is still too high,” he says.
According to Tzitzikostas, the current pressure on the automotive industry isn’t so much due to the push for electrification but rather to supply chain risks that became evident in the immediate post-COVID period, such as the semiconductor crisis, high energy costs, labor shortages, and dependence on suppliers outside the EU, particularly China. Notably, Viola Lin, Head of Public Affairs at CATL Europe—the European branch of the world’s leading producer of electric vehicle batteries, which is Chinese—was also present at the event.
The Draghi report highlights the great economic potential of transitioning to sustainable and smart mobility, which is not just a strategic choice but an economic necessity to keep the European automotive sector competitive and vibrant. Competition is fierce, and European companies are losing ground in key technologies like batteries and autonomous driving. If we want to maintain global leadership and a strong manufacturing base in Europe, we must better support the entire automotive value chain. The ‘Clean Industrial Deal’ we presented two weeks ago establishes a framework to incentivize investment and help the European automotive industry compete globally. The specific plan for the automotive sector is based precisely on this and was developed through dialogue with over 100 companies, associations, and industry stakeholders over the past two months,” the commissioner continues.
The plan, as we know, includes five key initiatives:
- Innovation and deployment
- Clean mobility
- Competitiveness
- Supply chain
- Skills
According to the Commissioner, despite everything, global sales of electric vehicles continue to rise. However, for companies to invest effectively and regain lost ground, they need regulatory stability, while buyers need certainty. For the first time since the Green Deal discussions began, a commissioner is finally including buyers—and therefore citizens—in this context, considering them key stakeholders.
For this reason, the focus has shifted to corporate fleets, both passenger cars and LCVs/heavy-duty vehicles, which were a recurring theme throughout EVision 2025. The commissioner explicitly states:
“To facilitate the transition, we will regulate corporate fleets, which account for 60% of car registrations in the EU and play a crucial role in the used car market. Additionally, we will work on revising the Car Labeling Directive and regulations on battery health and repairability, other fundamental aspects for the used car market.“
Alongside fleets, another key topic—again emphasized by the Commissioner—is infrastructure. Tzitzikostas speaks broadly about infrastructure, pointing out that some countries are more advanced than others and announcing plans to provide “technical assistance” to member states: “We will invest €570 million to accelerate the development of charging infrastructure.”
However, it is now evident that charging stations alone are not enough. One key takeaway from the event is that for the transition to be truly sustainable—supporting a growing demand for electricity without causing systemic failures—bidirectional charging is essential.
“The EU will support member states in implementing smart and bidirectional charging, which can ease the grid load and integrate renewable energy. We are also evaluating the creation of a regulatory sandbox to test innovative solutions. By 2030, we should make bidirectional capability mandatory for all electric vehicles—an incentive that could advance the market at no cost to the EU,” concludes the Commissioner, adding, “I will ensure that [this plan] is implemented quickly, even before the scheduled deadlines!“
The challenge of Heavy-Duty Electrification
A smart and flexible infrastructure is therefore seen as the key to a more sustainable electrification process, addressing concerns about whether the grid can handle a fully electric vehicle fleet. It’s no coincidence that among the EVision 2025 panel participants were representatives from companies like the Italian Enel Grid, Danish Spirii, and Finnish Virta, all working on smart grid software solutions.
Overall, this year’s approach was much more practical, with proposed solutions largely already in the implementation phase. This pragmatic approach was also evident in the speech by Christian Levin, President of the ACEA Commercial Vehicles Board (the division of the association dedicated to commercial and industrial vehicles) and CEO of Scania.
“Over the past few years, electric trucks have made great strides. Many people think electric trucks don’t exist, but for some time now, it has been possible to buy a fully battery-electric truck—not just from us [Scania], but also from many competitors. […] But what percentage of sales are electric trucks? That’s the issue. Last year, the entire sector was below 2%, and we, specifically, were at 0.3%. Despite billions invested in developing these market-ready vehicles, the industry has only reached these numbers. The reason? The enabling conditions are missing, and customers aren’t buying. It’s a huge problem: investing billions while having empty factories is not sustainable,” Levin states bluntly.
“And here’s the crucial point: why do people buy trucks? Unlike cars, where emotional, aesthetic, or family needs play a role, trucks are purchased for one reason only: to do business. It’s a simple matter of return on investment. Customers have two options: diesel or electric. Which costs less? Diesel,” he adds. “The real challenge is speed. In China, things move quickly. In the U.S., with Biden’s IRA, too. In Europe, however, the process is slow. To put the infrastructure issue into perspective, we currently have connection requests for 1 gigawatt, just for truck charging stations. One gigawatt, to clarify, is equivalent to the energy consumption of a city like Cologne. And above 5 megawatts, high-voltage connections are required, making everything more complex,” continues the Scania CEO.
Levin also dismisses hydrogen as a solution, pointing out that its efficiency is only 30%, compared to 60-70% for battery-electric vehicles: “This means hydrogen transport would cost twice as much as electric,” he says.
The solution, then, is infrastructure adaptation—especially considering the massive energy demand required. As Levin notes:
“In Sweden, a depot near Stockholm requested a grid connection for 60 electric trucks but only received approval for 5, forcing the other 55 to switch to biogas. The problem? The grid operator estimated 9 years for an infrastructure upgrade, whereas in another area of the same country, a similar connection was granted in just 9 months. This shows how crucial predictability and transparency are for investment processes.“
The role of Vehicle-to-Grid
Naturally, the success of V2G depends on the widespread adoption of a sufficient number of bidirectionally enabled electric vehicles. However, there are already quite a few on the market today: almost all of the latest electric Volvos support it, including the EX30 as well as the much more luxurious EX90 and ES90. Vehicles built on Hyundai Motor Group’s E-GMP platform also support it, including the Hyundai Ioniq 5 and 6, Kia EV6, EV9, and EV3, as well as the Hyundai Inster, the Renault 5 E-Tech, and Stellantis vehicles on the STLA Medium platform, such as the Peugeot e-3008 and Opel Grandland Electric.
Of course, the bidirectional flow of energy is inherently more complex than simple one-way charging (V1G). However, if properly implemented, V2G can stabilize the grid by effectively reducing electricity demand peaks and potentially lowering electricity costs for EV users.
V2G would allow vehicles not only to charge in their own neighborhoods but also to feed energy back into the grid, helping to balance the local power system and creating real “electricity islands” powered directly by users. This is somewhat similar to what already happens with modern homes equipped with solar panels, which both consume and feed energy into the public grid.
From an energy perspective, V2G could transform electric vehicles into decentralized storage units, capable of storing excess renewable energy and returning it to the grid when needed.
There are, of course, challenges—particularly in Europe, where two main factors come into play: the lack of real unity (since the EU is something slightly more powerful than a supranational organization, but not quite a true confederation) and bureaucracy, a burden we’ve carried since the days of the Roman Empire.
A major issue is the lack of a standardized interface between vehicles, chargers, and the grid. Currently, there are still relatively few EVs and chargers compatible with V2G, and even fewer under €30,000. Additionally, the precise synchronization of all vehicles to provide grid services—such as frequency regulation—remains technically complex, though it is mostly a regulatory issue.
Indeed, there are regulatory and tax constraints, as well as the need to obtain consent from vehicle owners for their batteries to supply energy to the grid.
Consumers at the center of the rransformation
Consumers will play an increasingly central role in this transformation. Smart charging will allow them to actively participate in grid management, helping to reduce congestion and electricity costs. However, to encourage their participation, energy providers must offer attractive incentives, demonstrating real savings opportunities and avoiding excessive profit-taking—something we’ve unfortunately seen before, such as the unjustified increase in public charging rates even after electricity prices began to fall.
France could serve as an example in this regard. It’s no coincidence that Renault has implemented V2G on its compact models, and currently, the only countries commercially applying V2G are France and Sweden.
Reluca-Simona Balan, Global Product Performance Leader – Connectivity & Multimedia at Renault Group, states:
“From our perspective, V2G technology should not be reserved for a lucky few but should be accessible to the wider public. As highlighted in the report, this technology significantly reduces household energy and car charging costs. Thanks to our new offer powered by Mobilize Power Solutions, we can guarantee customers in France an economic advantage ranging from €300 to €1,000, covering not only car charging but also part of their household electricity bill.”
A broader effort is also needed at the EU level. The recently presented Automotive Action Plan, unveiled during the event, includes commitments from the EU to improve its infrastructure, which is considered outdated and unprepared for a significant increase in electricity demand. However, in politics—especially in a fragmented entity like the European Union—there is often an entire ocean between words and actions. This is particularly true given that, under the current structure of the Union, the implementation of regulations is largely left to the discretion of individual member states.
