Europe’s EV transition has in many ways been world-leading – but progress is built on a patchwork of regulations and incentives that are inconsistently applied and could be easily reversed.
Right now, it’s standing on very shaky ground – just as markets around the world are gathering speed. Can Europe safeguard its place in the global race?
Three decisions – all expected within weeks – are key.
First, it’s crucial that the Europe’s CO₂ standards for cars and vans – and the phase-out of petrol and diesel cars by 2035 – remains untouched.
Companies across Europe, including those in Climate Group’s EV100 network, have made investments worth billions in recent years to strategically gear themselves – and the European market – towards electrified road transport. The clarity provided by a 2035 phase-out date, with tightening emissions reduction targets in the years leading up to the date, has been their north star.
Second, the Commission needs to set ambitious targets for companies to switch to EVs. A long-awaited corporate fleet mandate would turbocharge sales, drive down prices and create a thriving second-hand EV market for regular households. It could be game-changing.
Third, the EU must start prioritising modernised grids just as urgently as it once built roads, airports and rail infrastructure. Sam Dixon, Policy Manager, explains why this matters so much for the EV transition.
Europe’s companies are ready. Following ambitious pioneers like our members, businesses across all sectors are rapidly electrifying their fleets – because it makes business sense. But to keep leading Europe’s EV transition, they need a clear roadmap, and a stable policy environment.
This is Europe’s EV moment of truth. Will it hold its nerve, or will others start shaping the future of mobility?
Our policy work in Europe ,Here are just two of the latest indicators of how quickly Latin America is catching up:
in Uruguay, in the last quarter of 2025, 28% of new car sales were EVs;
in Costa Rica, 25.6% of new vehicles in October were electric – the highest share on record.
Overall, Latin America’s electric vehicle sales have more than doubled year-on-year, and favourable domestic manufacturing policies have helped attract Chinese brands to set up on home soil.
In Mexico, times are changing. The country saw a 72.84% increase in fully electric vehicle sales in the first months of 2025, compared to 2023, according to Mapping Electromobility 2025.
And on the manufacturing front, the country is rapidly transforming into a powerhouse, with EV production up an impressive 72.27% in the first months of 2025, compared to the same period last year. By the end of 2025, Mexico is projected to manufacture over 250,000 electric units, a 21.17% increase over 2024.
Walking through the streets of Mexico City recently, Killian Dorier, Senior International Programme Manager, was astounded by the number of electric cars on the road, and whenever he requested an Uber ride, there was a 50% chance he would end up riding in an EV, thanks to VEMO’s EV lease to own program for Uber drivers.
Fuel efficiency standards and EV mandates are still relatively new in the region, but some countries are leading the way and putting in place ambitious legislation. The early results? An explosion in the number of EVs available and a dramatic reduction in pricing.
For example, Chile’s National Electromobility Strategy, which has a goal of only EV sales in the country by 2035, is one of the most ambitious pieces of legislation in the world. When LDV standards and tax reductions were introduced in 2024 as part of the Energy Efficiency Law, EV sales quadrupled in Chile.
Over the coming months, we’ll be working with our existing EV100 members with operations in our focus countries (Mexico, Brazil, Chile, Kenya, South Africa and Indonesia) to understand their electrification journeys and the obstacles they face – and we’re always keen to hear from new companies.
Interested in our work? Get in touch.
If you trace the EV transition across Africa, the picture that’s emerging is one of industrial-scale manufacturing, pioneering regulation, and innovation-driven market entry.
Here’s a snapshot from our International Programme Manager Thyla-Jay Quickfall:
In Kenya, two- and three-wheelers dominate early adoption – and battery-swapping hubs make EVs affordable and practical for riders who rely on motorcycles and tuk-tuks for daily transport. With an almost 90% renewable grid, the country’s e-mobility push is inherently green, backed by fiscal incentives like 0% VAT on EVs and reduced excise duty.
In South Africa, the Government is paving the way for grid upgrades and localised EV manufacturing with its Integrated Resource Plan (IRP) 2025 – a key policy instrument to drive change. And incentives such as 150% tax deductions for EV production aim to secure jobs and keep Africa’s most advanced automotive hub competitive.
Meanwhile, Morocco is positioning itself as Africa’s battery hub. A $6.5 billion gigafactory is set to be built in Kenitra.
Ethiopia – the first country globally to ban imports of internal combustion engine vehicle in 2024 – is moving ahead with a National EV Strategy, targeting 500,000 EVs by 2030 and incentives for local assembly.
And Nigeria is emerging through its proposed EV Transition and Green Mobility Bill, mandating 30% local content by 2030, alongside a $900 million battery corridor deal with South Korea.
Together, these efforts signal Africa’s diverse pathways to electrification. They also underscore the need for investment and regional integration to turn potential into reality.
We’re excited to deepen collaboration with EV100 members in these new markets to accelerate the EV transition. Next up, we’ll engage with the EV Forum during the Africa Energy Indaba in South Africa – connecting with policymakers and stakeholders driving change. That’s in March 2026.
Interested in learning more about our leapfrogging campaign and work in Africa? Reach out to us directly at TJQuickfall@climategroup.org.
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