According to a recent Freedonia Group report, ICE vehicle phaseouts are approaching in Europe, causing an acceleration in demand for hybrid and electric vehicles.
“Western Europe already had the world's highest penetration of HEVs in 2021, according to the Freedonia Group, and the region is expected to account for an increased share of demand by 2026,” a recent press release states. “Eastern Europe is expected to register even faster growth, as EV penetration rates in the region are much lower and EU countries in the area will need to quickly adapt in the event that the organization adopts a blanket phaseout date.”
According to the analysis, “expanding regulatory support for the adoption of EVs by governments worldwide will boost sales of these units through 2026.”
European territories have largely contributed to the adoption of target dates for the complete phaseout of sales of new ICE vehicles, hybrids included.
According to the report, Norway has “the most ambitious target, aiming to reach 100% electric in new car sales by 2025, while several other European nations have set deadlines of 2030 or 2035,” the press release reveals. “The European Commission has also shown signals of potentially implementing an EU-wide phaseout date of 2035.”
Despite claiming third place in 2021 HEV market rankings, the US’s figures landed well below levels recorded in other high-budget nations. HEV adoption in the country is projected to remain high through 2026, but growth in European and Asian nations is also expected to skyrocket. “However, the US could be a stronger driver of growth in the 2030s, when European HEV markets begin to mature,” the press release warns.