Europe must set an example and step up EV incentives

Om Shankar, vice president & general manager of charging provider Konect on why governments should be helping drivers make the EV transition

While some markets continue to pour billions into EV consumer incentives, and others pull back, European leaders have their own decisions to make. For anyone who believes in the EV transition, the right choice is clear: breathe new life into an ambitious EV strategy and prioritise consumer incentives, ensuring more drivers can afford to make the switch.

Applying support in the right areas

Cost remains the number one barrier to EV adoption, and a study from earlier this year shows that EV subsidies are more effective when directed toward consumer rebates rather than public charging infrastructure. The study finds that cutting EV charge point subsidies leads to just a 0.87% drop in EV adoption, whereas reducing consumer subsidies results in an 8.8% decline. The German market in 2024 provides a stark real-world example of this, where reduced purchase incentives immediately impacted sales despite the country’s strong charging network.

In the past we’ve called for more government investment in EV charging networks, but the most effective way to drive EV adoption right now is to invest in the driver. Private investment is already playing a strong role in expanding our charging infrastructure, and the priority should be to make EVs more financially accessible to would-be buyers.

Expanding the context

It’s been encouraging to see European leaders publicly commenting on bloc-wide incentives to boost demand for electric vehicles. Teresa Ribera, executive vice-president of the European Commission, told the Financial Times at the World Economic Forum in Davos that officials were “shaping” options for an incentive programme.

Yet, the need for stronger financial support for EVs is a global challenge, not just a regional one. While some countries have aggressively backed consumer incentives – China’s sustained subsidies have helped it build the world’s largest EV market – others risk falling behind due to policy hesitation. Without coordinated investment in affordability, EV adoption will remain uneven, creating fragmented markets where only the most affluent can make the switch. When governments make EVs affordable, mass adoption follows naturally.

That’s because well-targeted consumer incentives create a virtuous cycle of investment, adoption, and innovation. When people feel supported in making the switch, demand rises, encouraging automakers to produce more EVs. Increased adoption then strengthens investor confidence in infrastructure expansion, allowing private companies to continue growing the charging network efficiently. This natural market response means that funds can be used where they have the greatest impact, helping drivers afford EVs rather than subsidising chargers that the private sector is already deploying.

Risks of inaction

However, where governments fail to provide this stability, they risk falling into a vicious cycle of uncertainty. Without strong demand signals, automakers will continue to reverse their EV ambitions, limiting model availability and keeping prices high. This, in turn, will slow adoption rates, leading to reduced investor confidence in infrastructure development. The result? Fewer chargers, fewer EVs, and a slower transition overall.

Electric vehicles are our present and future, there is no doubt about that. Anyone who suggests otherwise is in denial. The most effective way to accelerate EV adoption in Europe right now is to make the cars affordable. It sounds so simple, so why isn’t it happening?