Understanding the EU ban on sale of new petrol and diesel cars from 2035

The European Union recently announced a ban on selling new petrol and diesel cars from 2035 to reduce greenhouse gas emissions and combat climate change. This landmark decision signifies a shift in the transportation industry that will have far-reaching implications for manufacturers, consumers and the environment.

What does the ban mean?

According to the European Environment Agency, transportation is responsible for almost two-thirds of the EU's oil consumption and 30% of its total greenhouse gas emissions. The new legislation calls for a goal reduction in CO2 emissions of 55% for new cars and 50% for new vans by 2030 compared to 2021 levels.

The ban means that no new cars powered by petrol or diesel will be allowed to be sold in the European Union after 2035. Despite all the political bargaining and loopholes, formally announcing such targets is a crucial step since it communicates to market participants and the 447 million EU citizens that time is running out for selling internal combustion engine automobiles. The UK, with 60 million citizens - despite no longer being an official part of the EU - set the even more aggressive goal date of 2030, enabling plug-in hybrids to be sold until 2035. This does not apply to cars already in circulation, but it does mean that automakers will have to move away from traditional petrol and diesel engines and instead focus on electric vehicles.

Challenges of transitioning to EVs

The transition to EVs poses several challenges. Firstly, there is the problem of the current infrastructure not being able to handle the large influx and the charging requirements of electric vehicles. This includes the setting up of fast, efficient, and easily accessible charging stations for EV owners. The European Commission seeks to raise the number of publicly accessible charging points to at least one million by 2025, however, there is still a long way to go before achieving this goal, and several EU nations are trailing behind in the development of charging infrastructure.

Secondly, ensuring the production and a steady and reliable supply chain for the essential parts required for electric vehicles is another major challenge for the EU, as it requires significant investments in new manufacturing facilities and the development of new technologies. This includes the production of electric motors, batteries, and other vital parts for EVs.

The EU is working to address this challenge by supporting the development of a strong and sustainable EV production industry and supply chain, by providing financial incentives to manufacturers who produce EVs and by heavily investing in research and development. In October 2022, the European Parliament has supported the charging infrastructure targets for electric vehicles, which, if adopted by governments, would guarantee that by 2025 at the latest, drivers would have access to public charging stations throughout Europe. The decision requires charging hubs every 60 km along major roads as well as complete coverage on secondary roads and in towns and cities. Drivers can also anticipate having no trouble finding a charging station in Central and Eastern Europe, as the Parliament wants greater charger-per-vehicle targets for nations with low(er) EV adoption. Countries would be required to provide 1kW of charging for each battery EV on the road in more developed EV markets, which gives governments the freedom to choose whether adding additional slow or rapid charging stations would better serve the needs of their road users. Most importantly, drivers would be able to pay with their bank cards at each public charging station throughout Europe.

Lastly, there is the problem of affordability; despite the numerous benefits of EVs, one of the biggest challenges is making these vehicles affordable for consumers. The initial cost of buying an EV is typically higher (yet) than that of traditional internal combustion engine vehicles, and many consumers are hesitant to make the switch due to the upfront cost, but the gap is closing. The cost of batteries, which are the primary components of an electric vehicle, has decreased along with the pricing of electric vehicles. Although a sudden increase in demand for EVs and battery materials can slow down this trend for a brief time, the prices are expected to be even more affordable as soon as the manufacturing capacities reach the demand and new alternatives are developed. If the less expensive maintenance and fuel are also taken into consideration, the overall cost of ownership of an EV can be cheaper than that of an ICE vehicle.

Volume-weighted average of lithium-ion battery price from all sectors (in USD) (Source: Statista, 2023)

The precise price comparison is also impacted by the model and brand of the vehicles, the cost of fuel and energy, and government incentives for EVs. These incentives are provided by governments all over the world to promote the use of electric vehicles; some of the most common ones are the following:

1. Tax credits: By applying credits to the buyer's tax bill, these credits lower the overall cost of buying an EV.

2. Tax exemptions: Thanks to these exemptions, customers can buy EVs without having to pay certain taxes, such as sales tax.

3. Subsidies: Direct financial rewards offered to buyers to lower the initial cost of buying an EV.

4. HOV lane access: Some jurisdictions let EVs to use carpool lanes even if there is only one occupant in the vehicle, which speeds up and facilitates commuting.

5. Charging infrastructure incentives: To make it simpler for EV owners to recharge their vehicles, governments may provide incentives to businesses and people to establish charging stations.

6. Fleet incentives: To encourage the use of EVs in commercial settings, governments may provide incentives to businesses for the purchase of EVs for their fleets.

These incentives vary by country and region, and some countries may even offer a combination of them; therefore, it is important to always check with local government agencies for those available in a specific area.

In conclusion, the transition to EVs in the EU presents several challenges, but also offers many opportunities and leads the way towards a more sustainable, clean, and efficient future. All the research, development, investment and incentives mentioned above are already existing and ongoing project that aim to ease the transition as 2035 is getting closer.

How Volteum Can Help

The ban on the sale of new petrol and diesel cars from 2035 is a landmark decision that will have a huge impact on the automotive industry. Despite all the challenges and obstacles, many businesses are discovering that EVs have several advantages, including cheaper operating costs and lower emissions, which make them ideal for fleet use, and Volteum can provide companies with the necessary tools to make the transition as seamless as possible.

Volteum increases the efficiency of electric vehicle fleet management by eliminating the chance of getting out of charge, easing driver acceptance by reducing range anxiety, and ensuring that every vehicle reaches its destination. Our solution also makes the operation more cost-effective by saving loads of human resources, manual calculations and planning, and by telling when and how much the cars need to charge. Volteum’s powerful features help fleet managers handle tasks for 100s of EVs optimally, plan the best routes for them, and schedule their charging sessions on one platform - all automatically, considering the specific needs of the company and its drivers.

No more range anxiety, no more wasted hours because of electric vehicles. Let’s operate all your EVs on our platform as easily and efficiently as your diesel or petrol vehicles.

⚡Ready to operate your EVs faster? Talk to our experts, learn more about our solutions and start your free trial now! ➡️ https://bit.ly/volteumdemo

Sources: 1, 2, 3, 4, 5, 6, 7, 8, 9