The world car market, between the increase of the sales of electric cars and the escalation of commercial barriers. Europe adjusts the strategy, Romania suffers from the Rabla delay
Daniel Anghel, Country Managing Partner PWC Romania
The world car market is facing an increasingly pronounced risk of fragmentation in three geopolitical blocks, in the context of climbing commercial barriers and international tensions between the US, Europe and China. This evolution occurs at a time when battery electric vehicles (BEV) reached in the first quarter a global record market, after a 42% increase in sales compared to the same period of 2024, according to the latest Autofacts report, made by PWC. The evolution was mainly driven by the Chinese market, which generated over 60% of world sales and reached a 27% share.
Despite this increase, the transition to electromobility does not take place at the previously forecast speed. Geopolitical uncertainties, as well as divergent political decisions at international level, complicate the adaptation of local car industries to new requirements.
Europe is trying to remain competitive through support and flexibility measures, while large markets such as the US and China adopt aggressive protectionist policies. In this volatile landscape, Romania must rethink its stimulation policies in order not to miss the transition to electrical mobility.
Europe, return to the big markets, but with persistent challenges. Romania, steep decrease
After three quarters of decline, Europe recorded a solid comeback. In the first five major markets – the United Kingdom, Germany, France, Italy and Spain – Bev sales increased by 30% in T1 2025. The United Kingdom and Germany lead this return, with increases of 43% and 39%. Italy and Spain come strong, with advances of 73% and 69%, although from a lower starting point. France is the only one that registered a 7%regress, as a result of the expiration of state subsidies.
Despite the ascending European trend, Romania has registered a marked decrease in sales of electric vehicles, an evolution generated by the delays of the Rabla program. According to the data of the Directorate of Driving and Registration of Vehicles (DRPCIV), in the first quarter of 2025 the registration of electric vehicles decreased by 36.4%, which continued in April by a decline of 70%, all against the delay of the Rabla program. It is expected to start this week. The program is very important, the Romanian car sector risking to lose ground at a critical moment of global transformation.
European action plan to relaunch the automotive industry
In order to cope with the global competition and support the green transition, the European Commission launched in March 2025 an action plan dedicated to the automotive industry, a sector that contributes 7% to the EU GDP and supports about 13 million jobs.
This plan concerns five essential directions: innovation and digitalization – investments in products and reducing external technological dependence, clean transition – more flexible rules regarding emissions and accelerating the development of loading infrastructure, resilient supply chains – investments in critical raw materials, skills and social adaptation – professional conversion to electromobility with subsidized foreign producers.
The European Parliament has approved the temporary relaxation of CO₂ emission targets for cars and vans. Thus, compliance is no longer evaluated annually, but on the basis of an average during the period 2025-2027. The measure comes in response to industry's requests, which warned on potential fines of up to 15 billion euros, caused by the slow pace of electrification towards global rivals.
Tension geopolitical context
Outside Europe, the United States and China adopt drastic measures to protect their own industries, in an exchange of rates, which is now suspended for 90 days.
China, global leader in battery production (98%) and major actor in the value chain of lithium-ion batteries, continues to invest massively in innovation to reduce their dependence on foreign technologies.
The global auto industry is reconfigured between economic pressures and the transition to electromobility, and success will depend on the ability of industry producers to innovate, collaborate and quickly adapt to the new market conditions.
Article supported by PWC Romania
