Encouraging news recently made the rounds in Germany’s high-volume car market: 34,498 new battery electric vehicles (BEVs) were registered in January 2025 – a 58.8% increase compared to January 2025. BEVs accounted for 16.6% of total registrations, up from the annual average of 13.5% in 2024, indicating a clear upward trend. In France, battery electric vehicles already hold a higher market share, maintaining 17% in January 2025, the same as the previous year.
This dynamic trend is expected to continue throughout the year, partly driven by the EU’s stricter CO2 fleet regulations. In 2025, manufacturers must reduce their fleet emissions by 15%. The EU regulation also removes the weight factor, which previously allowed larger and heavier vehicles to emit more greenhouse gases. In an interview with the Power2Drive Europe team, Andreas Varesi, Managing Director of the German Federal Association for Advice on New Mobility (BBNM) illustrated the impact: Depending on the size of the engine, a VW Touareg 3.0 emits up to 245 g of CO2 per kilometer; the permitted threshold in 2025 is just 93.6 g/km – 151.4 more than permitted. This will amount to a fine of 95 euros per gram of CO2 per kilometer emitted above the target per vehicle, or a whopping 14,383 euros for each SUV sold.
Manufacturers are now under pressure to raise prices for combustion models while simultaneously increasing their focus on electric vehicles in European markets. As a result, Varesi expects prices to drop, with leasing offers soon available for under €100 per month. The ADAC (The German Automobile Club) had already reported falling market prices in November 2024. “It’s encouraging to see manufacturers are not only offering short-term discounts, which are often unclear for customers but are also permanently reducing list prices for electric cars. Many EV models are now approaching of even undercutting the prices of their combustion-engine counterparts”, explained Dr. Reinhard Kolke, Head of Testing & Technology at ADAC. Meanwhile, the consumer editorial team at Südwestrundfunk (SWR) predicts a sharp decline in prices and anticipates an “intense price war” for electric vehicles in the second half of the year.
In Poland, where electric vehicles currently hold a market share of around 3%, the government has decided to actively accelerate this trend. To achieve this, an incentive program worth approximately €380 million was launched, funded through the EU Recovery Fund. Buyers of new electric vehicles can receive subsidies of up to 40,000 Zloty (around €9,500). This incentive consists of a base amount and an additional bonus for scrapping a combustion-engine vehicle. Notably, the program includes a social tiering system, offering extra support to low-income individuals and large families.
Meanwhile, Norway remains far ahead. After years of targeted incentives, electric vehicles accounted for 88.9% of all new car registrations last year. The country is firmly on track to meet the goal of allowing only electric vehicle registrations in the near future.
