The Growing Business of Electric Vehicles: A Comprehensive Case Study in Europe

The European electric vehicle (EV) market represents one of the most ambitious and comprehensive mobility transitions in history. This case study examines Europe’s rapid EV adoption, driven by a unique convergence of regulatory mandates, economic incentives, technological innovation, and shifting consumer behavior. The European Union’s binding climate policies—including the Fit for 55 package and Euro 7 standards—have forced automakers to accelerate electrification, while national subsidies and tax benefits have made EVs financially attractive. Technological advancements, such as solid-state batteries and ultra-fast charging, have addressed early limitations, and corporate fleets are increasingly driving demand. However, challenges like supply chain vulnerabilities, charging infrastructure gaps, and affordability barriers persist, particularly in Southern and Eastern Europe. The report highlights Europe’s pioneering strategies, from Norway’s incentive-driven success to Germany’s industrial transition programs, while underscoring the need for equitable solutions to ensure inclusive growth. By 2035, EVs are projected to dominate Europe’s roads, reshaping energy systems, urban mobility, and employment landscapes. The study concludes that Europe’s experience offers critical lessons for global markets: electrification requires not just new vehicles but an integrated ecosystem approach, balancing policy ambition with social and industrial adaptation.