What Impact Will the EU's New CO2 Regulations Have on the Electric Light Commercial Vehicle Market?

The EU's CO2 regulations for 2025-2027 place stringent demands on light commercial vehicle (LCV) manufacturers, and consequently, the number of electric LCVs (eLCVs) they sell as a percentage of their overall LCV sales must increase significantly. While the overall LCV market is continuing to expand, for the first time in six years, demand for eLCVs is falling. In light of these new regulations, what changes are likely for Europe's eLCV market-the combined EU, the European Free Trade Association (EFTA), and the UK (EU+EFTA+UK)-and what options do market participants have available to ensure their compliance?

In this Strategy Insight, Guidehouse Research looks at the impact of new CO2 targets on LCV manufacturers in the EU+EFTA+UK, the structures of Europe's LCV and eLCV markets, potential solutions for complying with the new CO2 targets, and whether the new CO2 targets will increase or decrease eLCV adoption.