Subsidies clear the way!Europe accelerates the process of cars electrification

Subsidies clear the way!Europe accelerates the process of cars electrification

In order to prevent car companies from becoming the next Nokia, European countries are also fighting, vying to introduce various subsidy policies to speed up the process of electrification.

Europe is leading the way in popularizing electric vehicles. European countries encourage people to switch from traditional fuel vehicles to electric vehicles, hoping to ban the sale of fuel vehicles within the next ten years and achieve "net zero emissions."

Subsidies increase in European countries

European countries are preparing to establish an electric vehicle market through subsidies, free charging, tax relief and other policies, while providing consumers with more electric vehicle models.

In order to attract more consumers, the UK energy regulator plans to introduce policies to allow drivers to sell electricity stored in car batteries back to the grid when electricity demand reaches its peak. The British energy regulator believes that the participation of electric vehicle drivers in the plan can not only make money by selling electricity, but also reduce the development of new power plants. According to forecast data, if enough drivers are involved, it will provide electricity as much as 10 nuclear power plants.

Related plans will also use smart charging to track data such as car battery power consumption and power supply from the grid. Graeme Cooper, head of the State Grid, said: Smart charging essentially allows cars to "dialogue" with the grid, using data to evaluate when the best time to charge the car is a cheaper, more energy-efficient, and more sustainable electric car charging method.

The oil giant Shell has already taken the lead in car manufacturing, and is expected to install 50,000 street charging points by 2025. At present, Shell is actively cooperating with the local government to discuss the payment of the initial cost of charging pile installation. The Zero Emissions Government Office will pay 75% of the cost through a grant program.

In addition, as the UK plans to ban the sale of fuel vehicles from 2030, the use of electric vehicles is expected to rise rapidly. At present, the number of electric vehicles in the UK exceeds 535,000, including hybrid vehicles, which is expected to soar to 14 million by 2030.

Germany announced that it will extend the existing subsidies for electric vehicles to 2025 to increase the utilization rate of electric vehicles. In 2020, Germany's subsidy for electric vehicles has doubled, providing a subsidy of 3,000 euros for pure electric vehicles, a subsidy of 2,250 euros for hybrid vehicles, as well as a 10-year tax exemption and a lower value-added tax rate.

Germany is the largest electric vehicle market in Europe. In 2019, electric vehicles accounted for 1.8% of new passenger car registrations, and the proportion is increasing year by year. In the German market, electric vehicle manufacturers such as Smart, Seat, Mini and BMW have seen significant growth. In May 2021, the use of electric vehicles increased by 37% year-on-year. Skoda, Kia, Volkswagen, Hyundai, Opel, and Toyota have all increased their electric vehicle sales, but Honda, Jaguar, Mercedes, and Mitsubishi's electric vehicle sales have declined compared with 2020.

France has also actively joined in, providing a package of support plans to domestic automakers such as Renault to encourage the production of electric vehicles. At the same time, for consumers, the French government proposed a reduction or exemption of carbon dioxide taxes, subsidies of up to 7,000 euros, and a plan to scrap old cars with traditional fuels.

Spain has also proposed a similar policy to lower the tax on electric vehicles in major cities, and provide consumers who buy electric vehicles with a subsidy of 4000-5000 euros when scrapping old vehicles.

The Italian government provides subsidies for low-carbon emissions vehicles and increases taxes on high-carbon emissions.

Europe’s electrification process is accelerating

Western European governments provide various policy subsidies to consumers of electric vehicles to promote the "decarbonization" of the economy and speed up the process of electrification of vehicles.

As the European electric vehicle market continues to expand, automakers have increased the productivity of electric vehicles. In 2021, the European electric vehicle market share will rise from 41% to 43.3%, becoming the world's leading electric vehicle market.

According to the European Automobile Manufacturers Association (ACEA) report, nearly one-sixth of the passenger cars registered in the EU in the fourth quarter of 2020 were electric vehicles, accounting for 16.5% of the annual passenger car registrations (1.3 million).

Some European countries have taken a leading position in the promotion of electric vehicles, surpassing competitors such as North American countries.

#EVchargerModule #ChargingStation #GreenEnergy #ElectricVehicle