Electric Car Demand in Europe
There have been reports suggesting that the demand for electric cars in Europe may be slowing down. After years of accelerating growth, Europe’s electric car sales appear to be entering a go-slow zone as drivers wait for better, cheaper models that are two to three years down the road.
Despite this, it’s important to note that electric vehicle sales in Europe had increased by a compound annual growth rate (CAGR) of 61% over the 2016-2021 period, which was the world’s highest, above China (58%) and the United States (32%). Overall, electric cars accounted for 17% of Europe’s auto sales in 2021. However, the recent slowdown could be a temporary phase, often referred to as the ‘valley of death’, before the market picks up again.
