The Race to Electric

Despite UK new car registrations in 2022 dropping to a 30-year low, demand for electric cars continued to grow, and EV sales accounted for almost a fifth of new car sales throughout the year. This shows that the UK’s interest in switching to electric is still going strong in the lead-up to the 2035 ban on the sale of new petrol and diesel cars. But how does this compare against other countries in Europe?

To find out which European countries are on-track to win the ‘race to electric’, we’ve analysed the year-on-year growth regarding the number of EVs on the roads, as well as number of new EV registrations and public charging points. We have also predicted which countries will see the biggest increase in new EV sales in the years to come.

Which countries are seeing the biggest EV growth?

Our research shows that Lithuania currently leads the way in the race to electric. The country saw a 141% increase in the number of EVs on the road between 2021 and 2022, as well as a 139% increase in new recharging points - both of these figures excel far beyond any other European country’s growth. Although there are plans for the free EV charging stations on national roads to end by the end of 2023, the government intends to build 6,000 new EV charging stations by 2030.

Ireland follows closely in second place with a similarly impressive 109% increase in its number of EV charging points, plus a 59% rise in the total number of EVs on roads and a 38% boost in new EV registrations. In 2021 Ireland’s Department of Transport enacted a series of monetary incentives to encourage drivers to make the switch to electric, including up to €5,000 towards purchase of new battery electric vehicles (BEVs) and up to €600 to install a home charger unit for new and second-hand EVs.

The research also shows that EV adoption in Cyprus has really picked up, earning the country third place in the ranking. New EV registrations on the small Mediterranean island shot up by 130% between 2021 and 2022, which is a larger percentage increase than any other European country. The number of EVs on the road rose by 31% and its charging point infrastructure grew by 10%.

Other high-ranking countries include Spain, Luxembourg, and Greece, however the UK doesn’t appear until 19th in this list with new EV registrations decreasing by almost 11% from 2021-2022.

Top 10 countries leading in EV innovation

Which European countries are predicted to see the biggest growth in EV adoption in the future?

Our calculations reveal that Malta will lead the way for the growth in EV adoption in 2023 (44%) and 2025 (83%), making the island country well-positioned to meet the EU’s 2035 zero-emission goal on all newly registered cars and vans. This growth may be partly attributed to Transport Malta having announced an extension to December 2024 to its grant scheme offering a €11,000 grant for all plug-in hybrid vehicles registered in 2023.

Norway is predicted to take second place in 2023, with a 41% increase from 2022, before being displaced by Denmark in 2025 and 2030. Taking position two from 2025 onward, Denmark will first see an increase of 82% over the next three years before rising to 188% by the end of 2030.

Though it’s predicted to remain in fourth place for 2023, third position for the biggest growth in EV adoption will be held by Italy by 2025. It’s likely that uptake will be influenced by the €650 million allocated each year (until 2024) to incentivise drivers to buy electric or low-polluting cars. Compared with 2022’s figures, the country’s EV adoption is expected to increase by 28% in 2023, 76% in 2025, and 183% by 2030.

The tables below show the predicted percentage increase in EV sales from 2022 to 2023, 2025, and 2030.

Prediction in EV sales in European countries between 2022-2023:

Prediction in EV sales in European countries between 2022-2023

Prediction in EV sales in European countries between 2022-2025:

Prediction in EV sales in European countries between 2022-2025

Prediction in EV sales in European countries between 2022-2030:

Prediction in EV sales in European countries between 2022-2030
Amy Rootham

What our expert says...

“Switching to an electric car is not only a great way to reduce your carbon footprint, but owners of zero emission vehicles can also reduce running costs.

“As more of us opt for greener vehicles, the choice of insurance policies among providers for electric cars will increase too, so it’s a good time to see what’s out there. Always check your policy’s T&Cs to ensure you have an adequate level of cover for your needs.”

Methodology

This report used fleet, new registration and recharging point data from the European Commission’s European Alternative Fuels Observatory for all European countries. This report specifically looked at BEV and PHEV only.

The new registration predictions were determined using a linear trend formula using data from 2015-2022.

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Written byThe Editorial TeamExperts in personal finance, insurance and utilities

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