Market Trends of Europe Electric Motors for Electric Vehicle Industry
This section covers the major market trends shaping the Europe Electric Motors for EV Market according to our research experts:
Passenger cars Captures Major Share in Market
Passenger cars capture a dominant share in the electric motor market for electric vehicles, as OEMs continue to plan to invest hugely in research and development for the development of the next-gen electric vehicle.
The European automotive industry offers a broad portfolio of technologies for electrified vehicles and adopts most advanced technologies in-vehicle systems. Daimler, Volkswagen Group, ZF Friedrichshafen, and Robert Bosch are the major players in the growing trend of vehicle electrification solutions and continue to expand to get ahead in the fastest-growing electric vehicle market in Europe.
Europe has witnessed a surge in electric passenger car registration during the year 2020. A significant increase from 3.5% to 11% has been registered in the total new electric passenger car registration, accounting for 6% of total new car registration.
Many automobile manufacturing companies are likely to monetize the outpouring opportunities in Europe by gradually including sustainable mobility vehicles in their portfolio. For instance,
- In March 2022, Ford Motors announced to include three all-electric passenger vehicles in Europe by the end of 2024 and set a target to sell more than 600,000 electric vehicles annually by 2026 in the Europe region.
- In January 2022, General Motors announced considering investing more than USD 4 billion in two Michigan factories to increase its electric car manufacturing capacity. GM and LG Energy Solution have proposed constructing a USD 2.5 billion battery facility in Lansing.
Moreover, growing initiatives across the globe by regional governments to develop charging infrastructure and investment plans by key players to develop EV technology is anticipated to boost the demand for electric vehicles in Europe which acts as a growth lever for electric motor demand in the long term forecast period.
Germany to Drive the Market Growth
After China, Germany is the world's second-largest single market for electric vehicles. BEVs and plug-in hybrids (PHEVs) make for 19 percent of the European automotive market, with Germany accounting for 30% of that total. Germany's new electric passenger car registrations grew by 83.3 percent to 355,961 battery-electric vehicles in 2021. This increased the percentage of electric cars in the German new car market from 6.65% in 2020 to a new high of 13.6 percent in 2021.
In March 2021, Germany has started a major investment program in electric car charging infrastructure to meet its 2030 goal of 10 million electric vehicles and one million charging stations on German highways. The program will also EUR 5.5 billion (USD 6.5 billion) of funding for electric-car charging infrastructure
The country also offers considerable tax reductions and incentives for electric car and charging station purchases. New electric automobiles costing less than 40,000EUR are eligible for a 9,000EUR government refund, while a 900EUR subsidy from the state-owned development bank is available for the construction of a private electric car charging station. In 2021, German electric car buyers continued to benefit from generous subsidies. Owing to the larger market potential, key OEMs are pushing investments in the country to gain significant market share. For instance,
- In March 2022, Volkswagen announced that it is investing EUR 35 billion to build new EV plant in Wolfsburg, Germany. The new plant will focus on mass-market "Trinity" vehicles, which are the centrepiece of Volkswagen's new all-electric fleet.
- In March 2022, Tesla has inaugurated the fourth Gigafactory in Berlin, which is also the first in Europe. Annually, the Tesla Giga Berlin project is expected to produce up to 5,00,000 automobiles.
The rising electric vehicle demand and sales has fueled the adoption of electric motors as well. for instance, in July 2022, The German component manufacturer Mahle has developed an electric motor that has an ability to work continuously under a load of more than 90% during its peak. In addition, this superior continuous torque (SCT) electric motor avoids overheating and is compact and light, which makes it cheaper and reliable for passenger car segment.
Considering this ongoing development in the electric vehicles landscape, demand for electric motors in Germany is expected to remain on positive side of the graph.
