The transition to electric vehicles (EVs) is often portrayed as a smooth road to an environmentally friendly future, but new reports reveal that travelling in Europe can be far more complicated than expected.
According to a comprehensive study from the European Centre for Policy Research (CEPS), supported by the European Association of Automobile Manufacturers (ACEA), the EV transition faces serious obstacles that could threaten the global competitiveness of the EU’s automobile industry.
From surges in production costs and supply chain overhauls to infrastructure delays and labor disruptions, the report highlights the need for a complete industrial transformation, not just to impress the European car and van fleet, but to replace engines.
A crucial moment in the evolution of European automobiles
The European automotive industry is at a critical crossroads. The area must tackle a monumental overhaul of the automobile ecosystem as internal combustion engine (ICE) vehicles are phased out in favour of battery electric vehicles (BEVs).
The CEPS report highlights that this transition requires not only powertrain switching, but wholesale conversion of supply chains, manufacturing processes, labor skills and business models.
Despite increasing pressure on decarbonised transport and achieving climate targets, some established challenges continue to lose momentum.
Particularly in the price-sensitive segment, EV ingestion is limited due to charging infrastructure, high upfront costs and low consumer confidence.
As a result, the average age of vehicles on European roads is increasing, delaying fleet updates and hampering efforts to reduce emissions.
Competitiveness at risk
One of the report’s most severe warnings is about the threat to the EU’s global competitiveness in vehicle manufacturing.
While ice car production traditionally has held a value of 85-90% within Europe, the transition to BEVs can reduce its share to just 70-75%.
This decline is driven primarily by reliance on current external battery cell suppliers in Europe, particularly China, offering around 70% of the battery cells currently used in the EU.
To regain control of this critical segment, the report estimates that the EU will need to invest 42 billion euros per year in battery production infrastructure by 2030. Without this investment, the bloc will fall behind its global competitors and lose its industrial edge.
Price disparities and consumer resistance
Costs remain a persistent obstacle in EV transition. According to CEPS analysis, the average price required to maintain the current BEV pricing structure is around 45,000 euros.
However, consumers are significantly less willing to pay for EVs, averageing just 20,000 euros. Filling this gap is essential to achieving mass market adoption and ensuring that EVs become a realistic option for everyday drivers rather than a luxury item.
Infrastructure delays and bureaucratic barriers
Beyond production challenges, the EV transition is hampered by Europe’s lagging charging infrastructure.
A total of 172 billion euros will be required to meet the expected demand by 2030. However, progress is hampered by bureaucratic red tape, complicated permitting procedures, and slow approval of grid connections.
Skills and jobs during the transition
The transition from ice to EV production also has a major impact on employment. New roles emerge, especially in battery manufacturing and software integration, but may not fully compensate for the work lost in traditional engine production.
This report highlights the urgency of investing in upskills and retraining programs, as many skills can be transferred, but adaptation is required.
The road ahead
The CEPS report makes one thing clear. EV transitions are not linear or painless processes. It calls for coordinated policy support, strategic investment and deep restructuring of European industrial bases.
If managed effectively, it will secure its European position as a global leader in green mobility. However, without bold action, the continent risks losing both its economic value and its competitive advantage.
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