PSA Group and Volvo Cars, along with BMW Group and Renault Group are among the automakers on track to meet European Union emissions rules after sales of battery-powered vehicles tripled during the first half, according to a study.
The surge in electric vehicle sales helped cut average CO2 emissions of new cars registered in Europe by 9 percent to 111 grams per km, the steepest drop in more than a decade, according to a report by green pressure group Transport & Environment.
"Electric car sales are booming thanks to EU emissions standards," Julia Poliscanova, a senior director at the Brussels-based organization, said in a statement. "Next year, one in every seven cars sold in Europe will be a plug-in.”
The EU rules taking effect this year force manufacturers to reduce the average fleet emissions in the region to 95 g/km or face hefty fines. As a result, companies are accelerating deployment of a range of new plug-in hybrid and full-electric models, while at the same time countries including France, Italy and Germany have boosted consumer incentives toward their purchase.
In the latest move, France will add a 1,000-euro ($1,181) bonus toward the purchase of used electric cars, Transport Minister Jean-Baptiste Djebbari said in an interview in Le Parisien published Sunday.
Not all automakers are on track to avoid the fines, according to the study, with Daimler, Jaguar Land Rover and Volkswagen Group lagging behind due to sales of less-efficient gasoline cars and SUVs.
Fiat Chrysler Automobiles will meet the EU targets this year and next because on an agreement it has with electric-car maker Tesla that will offset its emissions, the study said. Without the deal, FCA could have faced a 1 billion-euro penalty.
"FCA has been a clear laggard for electrification due to underinvestment and thus fully relies on its pooling agreement with Tesla to comply," Transport & Environment said in a report (click below for full report).