The EV (Charging) market in Eastern Europe: current state and future growth
The European electric vehicle (EV) market is experiencing unprecedented growth in the 2020s. In 2020 alone, it showed a 143% increase in passenger electric vehicle sales compared to the previous year.
This expansion continued in 2021 by more than 65% year-on-year, which was a fairly good result after the COVID-caused boom of 2020. The first quarter of 2022 showed similar trends, with a 25% of EV sales increase on the market, compared with the same period in 2021.
When talking about such growth, media and EV enthusiasts usually mention the countries where the green movement is the most actively developing. Indeed, the likes of Norway, Germany, and Britain managed to keep sustainable growth of the EV industry even despite various obstacles.
At the same time, Eastern European countries are historically considered “outsiders” in the European electric car market. But are they really? I decided to find an answer to this question and understand whether these countries (Bulgaria, Poland, the Czech Republic, Hungary, Moldova, Romania, Slovakia, and Ukraine) have the potential for EV development.
How many battery electric cars are there on Eastern European countries’ roads?
The last decade has been one of rapid growth for the electric car market, even though we’re still at the beginning of the transition to cleaner, more sustainable mobility. Let’s look at how many BEVs are currently driving across Eastern European roads.
Bulgaria. As of 2021, there were 1,963 BEVs (0,06% of the total amount of passenger cars) in the country.
Poland. A bit more impressive statistics can be observed in Poland. At the end of 2021, there were 13,614 BEVs (0,05% of the total amount of passenger cars) on Polish roads.
Hungary. In Hungary, the number of BEVs is 10,048 registered cars (0,24% of the total amount of passenger cars).
Ukraine. As of June 1, 2021, Ukraine had about 64 459 green cars registered, 28 865 of them fully BEV (0,27% of the total amount of passenger cars).
Slovakia. For Slovakia, the stats do not look as prominent as for other countries. The European Alternative Fuels Observatory says that there are nearly 2999 battery electric vehicles in the country(0,1% of the total amount of passenger cars).
Romania. According to the European Alternative Fuels Observatory statistics, the Romanian EV market is still growing, with 11,883 electric automobiles (0,17% of the total amount of passenger cars) registered at the present time.
Moldova. There are around 12,000 electric cars in the Republic of Moldova, and the number of electric cars registered in the country is constantly growing.
The Czech Republic. In the Czech Republic, the total amount of BEVs is 9,969 registered cars (0,15% of the total amount of passenger cars).
The pace of EV number growth
Despite the fairly low share of BEVs in the total number of passenger vehicles, does the transition to E-mobility finally increase its pace in Eastern European markets? Seems like the answer is “yes”.
Let’s look at the growth pattern of the number of EVs in Eastern Europe (the data was taken from the latest research provided by EVMarketsReports.com.)
Slovakia. Judging from statistics on the rate of growth of electric cars, Slovakia is on the stage of the electricity age. For example, in Q1–2 2022, a total of 665 BEVs were registered in Slovakia, which is 53,6% more than in the same period last year.
Romania. Statista report says the number of new electric vehicle registrations in Romania increased significantly in the last decade. The number rose to 1,747 newly registered vehicles in 2019 and culminated in 2020 at over three thousand electric vehicles. But most importantly, over Q2 2022, Romanian BEV sales have grown at an astounding rate of +412,4% (if compared to Q2 2021)!
Ukraine. In Ukraine, even despite the war, the figures are really impressive. Compared to last year’s numbers, the registration of BEVs in May 2022 jumped by almost 67%. As of July 1, 2022, 37,550 electric cars were driving on Ukrainian roads, said Maryna Kytina, an expert on transport innovations and adviser to the Deputy Minister of Infrastructure. That number is 2.5% more than in the same period of 2021. That means that even in wartime Ukrainians choose economy and practicality.
Bulgaria. Bulgaria contributed to the solid growth of BEVs, registering improvements of +180,4% in comparison from Q2 2022 to Q2 2021.
Poland and the Czech Republic These two countries are neck to neck: +67,0 % in Poland and +65,4% in the Czech Republic if comparing Q2 2022 with Q2 2021.
Hungary. Hungary is not in the lead but not the last with its + 48,7% contribution during the second quarter of 2022 in comparison to Q2 2021.
Moldova. According to the data of the Public Services Agency, 222 electric vehicles were registered in 2019 in Moldova, which is twice as much as in 2018. But in 2022, 12,000 EVs are traveling around the country. Impressive, isn’t it?
What about the most popular EV models in these countries?
If everything is clear with the number of cars — what’s in fashion now? Let’s consider which EVs melted Eastern Europeans’ hearts over the last few years.
Hungary. Among Hungarians, Kia e-Niro became the most popular EV model in 2021. Kia e-Niro with an increase of 61.2 percent (603 units), was followed by the Nissan Leaf (436) and the bottom podium was the Hyundai Kona (296).
Ukraine and Poland. Well, Ukrainians and Poles have similar tastes: Nissan Leaf remains the most popular electric car on the market. In Ukraine, from January to May 2022, 567 cars of this model received official registration. At the same time, in 2020, over 1.7 thousand Nissan Leaf units were registered in Poland.
The Czech Republic. Czechia is compelled to rely on foreign EVs, but as it turns out, the top model is the Enyaq EV from the country’s native Škoda (data is relevant as of 06 May 2022).
Romania. In Romania, Dacia Spring was the best-sold e-car in December 2022. Despite its weak score on EuroNCAP tests, Dacia Spring electric model was the most registered car on the local market that month, according to data collected by the automobile industry association APIA.
Slovakia. Looks like Ukraine and Poland are not the only ones with similar tastes: the Škoda Enyaq EV model was favored and became the best-selling electric car by users from Slovakia and Czech Republic.
Bulgaria. Statistics say that one of the most widely offered EVs in Bulgaria is the Hyundai Loniq 5. And no wonder, that the car sets trends with its individuality
Number of EV Charging stations
Due to the latest research by McKinsey, up to 6.8m public charging points would be in need across the EU by 2030 to reach the target of 55% CO2 reduction. Thus, 14,000 public charging points for all vehicle segments should be installed in Europe every week. But is Eastern Europe keeping up with those plans?
The shortage of charging infrastructure, notably public points for those without private garages, is often raised as the primary concern against faster electric car EV adoption, especially in Eastern European countries.
As the EU’s CO2 emission reduction targets propel electric car sales to new highs, the number of chargers is growing up simultaneously. Let’s take a look at the extent of this growth.
Hungary. Hungary has seen an increase in the available public infrastructure for charging EVs. There were 2,323 AC and 563 DC recharging points in Hungary as of 2021.
Poland. In parallel with the electric vehicle fleet, the charging infrastructure is also developing in Poland. At the end of 2021, there were 2127 AC and 657 DC recharging points for EVs in the country.
Bulgaria. Bulgaria is demonstrating 683 public recharging points for EVs in 2021.
Romania. The number of electric vehicle charging stations in Romania increased a lot over the last few years. If in 2014 there were only 15 recharging points, by 2021 the number increased to 1240 AC and DC recharging points, according to the AFIR categorization.
Ukraine. As of the beginning of November 2021, there were 3,244 charging stations and 7,757 charging points in Ukraine, according to MIU advisor Maryna Kitina in her own research. However, of these, only about 24% (1,837) are equipped with ports for fast charging above 22 kW.
Moldova. In Moldova, the public charging infrastructure is also developing. There is no exact data about the total numbers, but for instance, according to the information presented by the Agency for Energy Efficiency (AEE), 20 AC charging stations for electric cars have recently been installed, based on the financing agreement with the United Nations Development Program (PNUD), reports Știri.md.
The Czech Republic. In this country, there are quite a few amounts of recharging points (AC and DC). The total number of publicly accessible recharging points is 2 299 (by the end of 2021).
Slovakia. Slovakia is demonstrating 1624 public recharging points as of 2021 (both AC and DC).
*most of the data for this article was taken from the European Commission website
Charging points accessibility per country
On the one hand, it seems like there are a lot of stations, but let’s look at their accessibility in different regions.
Source: ACEA, EAFO, ERF, EUROSTAT
Here is the big problem with electric cars: there is not enough charging. At this stage, we are faced with the problem of not so much the shortage of charging stations, as their availability. As we can see from the table above, stations are often located not quite user-friendly. The highest number of stations per 100 km is in Slovakia, and the smallest amount is in Poland. But it is worth taking into account the size of the country and the population number.
Government incentives for EV owners
The challenge of the Eastern European EV market I guess is similar to the challenge faced by other markets: convincing more motorists the switch to sustainable electric mobility.
The perspectives on achieving this goal vary from country to country: in regulatory, tax, and financial incentives. These incentives are aimed at both private customers and drivers of company vehicles.
I suggest we have a quick look at government incentives in Eastern Europe.
- In Slovakia, to increase sales of electric cars, the country’s economy ministry provided €5.2 million in 2016 in state subsidies — €5,000 for the individual purchase of an electric car and €3,000 for a plug-in hybrid.
- “Zero” motor vehicle tax. EVs are not subject to motor vehicle tax (applicable to all vehicles that are used for business activities). However, the tax return must be filed.
- You do not need a license for charging stations. The operation of a publicly-available charging station is exempted from the licensing duty.
- No VAT on parts for EVs.
- Committing to Kyoto Protocol. In a few words, the Kyoto Protocol operationalizes the United Nations Framework Convention on Climate Change by committing industrialized countries and economies in transition to limit and reduce greenhouse gas (GHG) emissions in accordance with agreed individual targets.
- The end of 2019 brought a new development — “green” license plates that will be issued at the Ministry of the Interior Service Centers during the registration of electric vehicles.
- Also, legislation dictates that EV owners get a 10% discount for third-party liability insurance.
- There are subsidies available to assist with the purchase of electric vehicles for use in public services, for example, waste collection and disposal.
- EV users do not pay for parking in some Bulgarian cities (Sofia, Plovdiv, and Burgas).
- Environmentally friendly vehicles are exempt from the property acquisition fee, and registration tax.
- Electric vehicles and plug-in hybrids are also exempt from annual road tax
- Physical persons will be eligible to receive up to PLN 18750 to cover up to 15% of the cost of a new electric passenger car.
- The listed price cannot be greater than PLN 125000, and the grant only covers 2000 EVs in total.
- 1000 electric vans are to be subsided with up to PLN 70000 covering up to 30% of the acquisition cost and will get an additional grant of PLN 5000 to compensate up to 50% of the cost of a charging station for the van.
- A similar system is available for electric taxis — a grant covering 20% of the cost of a charging station worth up to PLN 150000.
- Also, EVs are exempt from excise duty, while hybrids pay a reduced rate.
- Fully electric vehicles are exempt from ownership tax
- A grant of up to €2500 is available for stations with power up to 22 kW and €30000 for stations >22 kW.
- Special parking for EVs– there are some dedicated parking spaces for EVs including charging points in cities such as Prague, Ostrava, Brno
- Subsidies — The amount of the subsidy may be up to CZK 250,000 (EUR 10,000) per vehicle depending on the type of fuel used by the car. For other vehicles such as buses, it may rise to CZK 1m (EUR 40,000).
- Tax benefits — EVs or hybrid vehicles are freed from road tax. In general, only cars and other vehicles used for doing business are subject to road tax. This measure, therefore, doesn’t influence usual drivers.
- Moldova is still on the way to strengthening its incentives for EVs. However, since 2018, there has been an additional exemption from circulation/road tax for EVs. The taxation for hybrids is at 50 percent of that of conventional vehicles.
Outcomes
Currently, the BEV electric car market in Eastern Europe is indeed in the early stages of development, as evidenced by the small share of such vehicles in the total number of passenger cars and the lack of a sufficiently developed network of public charging points. However, given the rapid growth of the number of EVs and EV Chargers in each of the countries, I guess by 2025 the stats will be much different.
So, in our race for perfection, there are more and less developed countries, comparing all the criteria:
The pace of EV number growth:
— The most developed: Romania
— The least developed: Hungary
The number of electric cars on countries’ roads:
— The most developed: Ukraine
— The least developed: Poland
The total number of EV charging stations:
— The most developed: Ukraine
— The least developed: Moldova
Accessibility criteria:
— The most developed: Slovakia
— The least developed: Poland
Government incentives for EV owners:
— The most developed: Poland and the Czech Republic
— The least developed: Moldova
Overall, in each of the countries, there is yet much to be done. It is vital on the part of the principals to launch a set of non-financial incentives, as well as financial support for the expansion of the charging infrastructure.
To make an electric car affordable to the average driver, we need to get carmakers to scale up production and continue to develop recharging stations infrastructure. As we can see, the number of recharging stations is growing but still focused on the European mega-cities. Moreover, the deployment of the recharging stations in some Eastern European countries is not widespread (Such as Moldova, Romania, etc.). So faster rollout of recharging stations would be an important factor for the electric car industry in this region.
Do you know any more insights about the development of the EV market in Eastern Europe? Write in the comments below.
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