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European Automakers at Risk in the Global EV Race

In a recent report released by the International Council on Clean Transportation (ICCT), it has become increasingly evident that European automakers are struggling to maintain their foothold in the rapidly evolving electric vehicle (EV) market. The report, now in its third edition, highlights the challenges European manufacturers face as their Chinese counterparts gain significant ground in this competitive landscape.

The State of the Global Automaker Rating

The ICCT's Global Automaker Rating evaluates the progress of a select group of manufacturers toward a future with zero emissions. This evaluation is based on comprehensive data, including sales figures, technological advancements, and strategic commitments across 10 specific metrics for the year 2024. With the ranking coming from the assessment of the world's top 21 automotive brands, the findings reflect a challenging year for Europe.

Dr. Peter Mock, director of ICCT Europe, noted that 2024 was a missed opportunity for European manufacturers. As the global automotive markets accelerate their electrification efforts, brands heavily reliant on exports, particularly German automakers, are feeling the pressure. The report suggests that a robust home market for EVs in Europe could shift this momentum back in favor of European companies. Although initial EV sales data for 2025 is looking promising, the stakes to regain competitiveness remain high.

The Dominance of Chinese Manufacturers

For the third consecutive year, Tesla from the United States and China's BYD have emerged as leaders in the rating. Notably, BYD surpassed Tesla last year by achieving a remarkable 25% increase in global battery electric vehicle sales compared to 2023. Meanwhile, the remarkable ascendancy of Chinese manufacturers is evident as they occupy top positions among the rankings.

For example, Chinese innovators have captured the top five slots for zero-emission vehicle sales and five of the top six spots for overall electric vehicle sales. Companies like Geely and SAIC proudly report that they have reached a 50% share of the EV market, achieving their targets for 2025 a full year ahead of schedule. China is now producing over 11 million electric vehicles annually, accounting for more than half of global EV sales.

A Turbulent Year for European Brands

However, the report indicates a stark contrast for German and French automakers, who lost traction in the EV market throughout 2024. BMW's score for zero-emission vehicles only increased by two points, while competitors such as VW, Mercedes, Stellantis, and Renault saw a decline, each losing a point. This drop illustrates their minimal improvement in ranking among zero-emission vehicles.

Additionally, both BMW and Renault revised their strategic visions downward, leading to a reassessment of their ambitions for electric vehicle production. Their brands, MINI and Dacia, have canceled previous goals to achieve 100% zero-emission sales globally by 2031 and 2035, respectively. Furthermore, VW and BMW received unfavorable scores in battery recycling metrics due to a lack of evidence supporting their announced plans and partnerships.

Conclusion

The ICCT report paints a worrisome picture for European automakers at a pivotal moment for the industry. As Chinese manufacturers forge ahead with innovative EV strategies and solidify their market positions, European brands must rethink their tactics and find ways to adapt in order to compete in a rapidly transforming automotive landscape. The coming years will be crucial as manufacturers navigate the increasing electrification of the global automotive market and strive to reclaim lost ground.