Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

The European Automobile Manufacturers Association (ACEA) announced on Friday, that all its member states will provide purchase incentives or tax benefits for electric vehicles (EVs). 


This policy is part of the EU’s recovery plan for the automotive industry, which contracted by 41.5pc in the first five months of the year because of weak demand as a result of COVID-19 related shutdowns. 


EVs defied the trend of falling sales last quarter, doubling on the cars sold while petrol and diesel car sales fell about 34pc during the same period. The EU plans to capitalize on this trend and is incentivizing the purchase of EVs, which is also in line with the region’s green initiatives. The policy also includes a scrappage policy pairing with the purchases. 


Twenty member countries are now providing EV purchase incentives ranging from €2,000-9,200 ($2,260–10,398) while six members are providing up to 100pc exemption from taxation related to the purchases of EVs. 


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