Car Manufacturers: Electric Vehicle Sales Must Surge by Up to 80% to Meet Emission Targets

Prague – In order to meet stricter emission targets set for next year, domestic car manufacturers in the Czech Republic will need to significantly increase their sales of electric vehicles by 60 to 80 percent, as stated by Zdeněk Petzl, the executive director of the Automotive Industry Association. This translates to the sale of approximately 70,000 to 90,000 fully electric cars annually to avoid potential penalties. However, interest in electric vehicles appears to be waning. Data from the Automotive Industry Association reveals that nearly 96,000 electric cars were produced in the Czech Republic in the first ten months of this year, down from a total of 130,000 in the previous year.

The Ministry of Transport and the Automotive Industry Association have indicated that European car manufacturers may face sanctions next year amounting to up to 16 billion euros—roughly 400 billion crowns—for not meeting emission limits for passenger and commercial vehicles. It remains uncertain how much of this burden will fall on domestic manufacturers, as sanctions will be imposed on entire groups, many of which operate in multiple countries.

Petzl further noted that in the European Union, the proportion of new battery electric vehicle registrations must increase from the current 13.1 percent of total car sales to 22 percent by 2025. This would require a return to the 2023 level of battery electric vehicle registrations, around 15 percent, with an additional 770,000 battery electric vehicles registered. However, current market forecasts (EY Forecast) predict only a 17 percent increase in electric car sales by 2025, falling short of the necessary target.

Last week, Czechia, supported by Italy and other nations, urged the European Union to reconsider the upcoming sanctions against car manufacturers that fail to sell enough electric vehicles. Minister of Industry Lukáš Vlček (STAN) emphasized the need for the automotive industry to focus on innovation and enhanced competitiveness rather than being burdened by fines for inadequate electric vehicle sales.

Petzl warned that the potential sanctions could consume 25 percent of the European automotive industry’s total budget for research and development. This diversion of funds could hinder investments in new technologies and modernization of manufacturing processes, ultimately delaying efforts to decarbonize road transport.