Europe Just 3 Years Behind China on Electric Vehicles Sales

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EVs are ‘super-lever’ to ending oil dependence; European oil imports set to rise to €300 billion in 2026, an €80 billion oil crisis premium.

If Europe maintains its ambition on electric car uptake, it can close the gap with China before 2030 and radically reduce oil use in transport, new research from T&E shows. In 2020, the EU and China were level on EV sales share but weak European car CO₂ standards after 2022 saw China pull ahead. Thanks to stronger targets in 2025 the EU finds itself only three years behind, the analysis shows. With seven out of 10 EVs sold in Europe being made in Europe, a speedier transition can ensure that Europe’s auto industry stays in business.

As Europe reels from yet another energy shock, oil prices of well over US$100 per barrel have caused price hikes for Europe’s motorists. T&E’s new State of European Transport report shows that with the right policies, Europe can reclaim the lead in one of the most critical clean technologies of the 21st century, and rapidly reduce its dependence on imported oil. Europe’s 8 million electric cars cut around 46 million barrels of oil in 2025.

William Todts, Executive Director of T&E, said: “EVs are the super-lever for ending Europe’s dependence on imported oil. The industry narrative that we are too far behind China and that we must weaken the car CO₂ regulation to help them compete, is fundamentally wrong. The regulation is not the problem. It is what keeps Europe in the race to be global leaders on battery electric cars. We need to accelerate, not capitulate.”

The State of European Transport shows that carbon emission reductions from transport have plateaued. Countries with high EV sales like Denmark and the Netherlands are seeing strong cuts in vehicle carbon pollution. But this is offset by emissions growth in countries like Spain where EV sales remain far too low. Slow uptake of EVs prolongs Europe’s oil dependence.

China is going full speed ahead on cleantech and electrification, with Chinese companies making 60% of electric cars sold around the world, while its battery production is 20 times that of Europe. At the same time, Europe’s battery industry is transforming, with European and Chinese companies joining existing South Korean companies to boost battery production in the EU. The right policies and financing can release Europe’s enormous potential to grow its battery industry.

Todts concluded, “The State of European Transport sends a stark message. Europe’s Green Deal is a roadmap for the cleantech economy of the future, and the blueprint to enhance European security by reducing dependence on oil imports. Yet, it is being attacked by Europe’s automakers who are more concerned with short-term profits than long-term security and sustainability. The EU must resist pressure to further weaken regulation.”

Article from T&E.