14:39 25-11-2025

Europe’s EV transition is slipping toward 2040 amid charging and policy hurdles

Europe is effectively acknowledging it may not hit its own target of moving to all-electric new car sales by 2035. A new Allianz analysis indicates that, at today’s pace of infrastructure build-out and investment, the realistic timeline slips closer to 2040. The obstacles stack up, and all of them point to a slower march toward zero-emission mobility.

EV sales are outpacing the market, yet that momentum isn’t enough: most buyers still opt for hybrids. Charging remains the chief bottleneck. The EU has roughly 1.1 million charging points, but by 2030 it needs at least a three-and-a-half-fold increase. Industry estimates already call for 8.8 million, while the current rollout would cover barely half of that. The distribution is lopsided too: more than half of all chargers are concentrated in France, Germany, and the Netherlands, while 80% of EU countries are far behind. The map tells its own story — a patchwork network rarely convinces first-time EV shoppers.

The political arena is just as split. Germany and Italy want to delay the phaseout of combustion engines, citing cost pressures and shrinking margins. France and Spain oppose any postponement, warning it would scare off investment and slow the path to climate targets.

Automakers, for their part, are tapping the brakes. Profits from EVs are still below expectations, the United States has pared back support, and Chinese brands are gaining ground with lower prices and modern technology. Spending underscores the gap: Chinese and American players invest up to 12% of revenue in R&D, while Europe sits at about 6%.

Hybrids are drawing in nearly half of former combustion buyers, capping the growth of pure EVs. Without a decisive push — from denser infrastructure to coordinated incentives — accelerating the transition will be a tall order.

If Europe wants to hold onto leadership, it has to move now. Otherwise, the continent risks losing the EV race to China and the United States well before 2035.