Consumer expectations on EV mobility

The automotive industry is undergoing a major transformation, shifting from traditional powertrains to zero emission vehicles. Corporate vehicle registrations are responsible for up to 60% of new vehicle purchases and are therefore recognised as a key facilitator of reducing overall fleet emissions. The remainder is predominantly financed via loans. Moreover, roughly 80% of all European consumers will buy a used car as opposed a new vehicle, making consumer finance the primary mobility enabler for consumers. 

At present, the uptake of Battery Electric Vehicles is facing obstacles linked to customer demand, vehicle utility and pricing, supply and infrastructure challenges paired with regulatory instability and geopolitical fluctuations.

Over the last three years, discussions at the EU level have taken place regarding the role of corporate fleets within the context of Europe’s decarbonisation trajectory. One of the proposals under review to boost uptake is to implement what is referred to as a corporate fleet mandate. The mandate would essentially impose a requirement on all corporate vehicle acquisitions to only buy BEVs, with an intended target of 100% by 2030.

Such a regulatory measure will not only have a direct impact on supply and demand in primary market, but it will also further undermine remarketing values of BEVs making it to the used market as in many Member States consumers are still holding on making the decision to acquire a BEV. The anticipated market turmoil is likely to further undermine consumer confidence. In order to address the mismatch between consumer expectations regarding prices and utility versus supply, Eurofinas has been engaging with the Commission to primarily focus on incentives/subsidies that could be deployed to stimulate the purchase of used BEVs via consumer loans. This issue will also be raised in the next strategic industry dialogue with Commissioner Tzitzikostas scheduled for17/7.