According to market data platform Statista, the European passenger vehicle market will be worth US$413.5bn in 2023, with a CAGR of 2.26% through to 2027. With the UK and EU setting bans on the sale of new internal combustion engine (ICE) models in 2030 and 2035 respectively, AlixPartners forecasts huge market share gains for battery electric vehicles (BEVs). By 2035, it estimates that BEVs will constitute 83% of the European market, up from 8% in 2021.
As a display of its confidence in BEV technology, Volkswagen announced that its product line will be exclusively electric for the European market by 2030. Despite this, industry reactions to the November 2022 publication of Euro 7 emissions standards indicate the market’s trajectory is far from assured. Ranging from criticisms of being unambitious to unachievable in the timeframe given, Euro 7 does not make the death of ICE a foregone conclusion.
