Electric mobility at a crossroads: lessons of success and mistakes in Europe

In 2024, the European automotive sector ended with worrying figures, far from the 15 million units sold in 2019.

In Spain, total sales increased by 7.1%, surpassing one million vehicles sold for the first time since the pandemic, according to the Spanish Association of Automobile and Truck Manufacturers (ANFAC). However, fully electric cars fell by 3.1%, with 73,961 units, and total electrified vehicles, including plug-in hybrids, also declined by 3.9% according to data from the Business Association for the Development and Promotion of Electric Mobility (AEDIVE) and the National Association of Vehicle Sellers (GANVAM). These figures reflect an insufficient pace to meet the decarbonization targets set by the European Union.

Despite regulations and technological progress, the European industry has advanced slowly. Traditional business models have not adapted quickly enough, allowing markets like China to take the lead. In this context, incentives play a fundamental role, but their effectiveness depends on how they are designed and managed. While some countries have simplified procedures, others have imposed bureaucratic complexities that slow down the transition.

The year 2025 marks a turning point: European CO2 emission standards will become stricter and more costly for those who fail to comply. Companies must accelerate electrification and reinforce the charging infrastructure. Spain, for example, has 40,000 charging points, less than half of the 90,000 needed. Without a more ambitious rollout, drivers will continue to face practical barriers that hinder the adoption of electric vehicles.

Additionally, the high price of these vehicles limits access for many families, creating a phenomenon of urban dualization and a social divide that can lead to “two-speed cities,” where only a few have access to cleaner and more cost-efficient technology.

Iberian Contrasts

On the Iberian Peninsula, we are witnessing two examples with completely different outcomes regarding the implementation of aid policies and incentives by the governments of Spain and Portugal.

In recent years, Portugal has become a benchmark, positioning itself as a model of success in southern Europe. The country has established itself as a notable example in the adoption of electric vehicles. Thanks to a 10% increase compared to 2023, the market share of zero-emission vehicles has surged to nearly 20% of total sales in 2024, according to the Associação de Utilizadores de Veículos Elétricos (UVE).

The successful Portuguese model has demonstrated how a system of direct, agile incentives with minimal bureaucratic barriers can make a significant difference. Thanks to fast and accessible incentives—such as total exemption from automobile tax—Portuguese consumers have faced fewer obstacles in choosing sustainable mobility. 

These measures have been reinforced by the government’s push to expand the charging network throughout the country. In just the first six months of 2024, more than 5,000 new charging stations were installed, removing one of the main barriers to electric vehicle usage.

This success sharply contrasts with the Spanish case, where the Moves III Plan has been hindered by administrative complexity, delegated to the Autonomous Communities. The processing of aid applications can take more than two years, reducing its attractiveness for beneficiaries. Additionally, recipients must declare the aid as taxable income in their next year’s tax return, further diminishing its effectiveness.

Despite criticism from consumers, manufacturers, and industry associations, the Government of Spain included an extension of the Moves III Plan until June 30, 2025, in the so-called “omnibus” royal decree-law, which was ultimately rejected in the Congress of Deputies on January 22.

AEDIVE continues to stress the need for a new system of direct, more agile and centralized incentives, with the aim of at least doubling the number of electrified vehicles by the end of 2025. This challenge will be even more difficult now that the year begins uphill for the recovery of sales, with Spain currently left without purchase incentives for electric vehicles.

Divergent European Models

Compared with the two Iberian models, France has opted for a hybrid approach, combining direct subsidies with innovative programmes such as “social leasing”, designed to make it easier for low-income families to access an electric car. This just transition system has been well received and reinforces France’s image as one of the leading countries in sustainable mobility.

Meanwhile, Germany—which should be the main driver of electric mobility in Europe—has kept its foot on the brake since the abrupt withdrawal of subsidies at the end of 2023, which caused sales to plummet, with a 29% drop in the first quarter of 2024 alone. This decline has highlighted the German market’s reliance on public incentives and the lack of structural alternatives to maintain momentum without subsidies.

In contrast with the German situation, the United Kingdom—although no longer part of the European Union—has taken a different path to accelerate electric car adoption. In 2024, it surpassed Germany as the largest electric vehicle market on the continent, with a market share of 19.6%. This achievement was made possible by the Zero Emission Vehicle (ZEV) mandate, which obliges manufacturers to meet electric vehicle sales targets under threat of financial penalties. Unlike Germany, which depended on subsidies, the UK has driven the transition without direct consumer incentives but with strict regulations that reinforce the industry’s commitment.

Lessons for Europe

Alongside national policies, proposals from environmental groups such as Greenpeace have emerged — in Germany, for example, they have proposed an additional tax on combustion vehicles to fund €4,500 subsidies for each electric vehicle.

The lack of a unified European strategy shows that incentives are key to the transition toward electric mobility, but their success depends on efficient and coherent design. While Portugal and the United Kingdom advance with effective models, Spain remains trapped in administrative complexity, and Germany is trying to redefine its strategy after a setback that has harmed its competitiveness.

Now more than ever, electric mobility requires agile and strategic policies. Only then will Europe be able to consolidate its leadership in sustainability, reduce inequalities, and turn the electric vehicle into a driver of economic and social transformation.