Last year, we heard from several customers complaining about a slowdown in the field of electromobility. In discussions with our German colleagues, it became clear that the European automotive industry wanted to make one last push to sell as many vehicles with combustion engines as possible before the new rules come into force on January 1, 2025.
In this blog post, we examine why 2025 could be a turning point for electric mobility, what conditions will apply from January 1, 2025, and why Chinese electric vehicles could increasingly conquer the Swiss market. We also take a look at the impact on the distribution grid, charging infrastructure, and load management.
Review of 2024: Car manufacturers (still) promoting fossil fuel engines
Although there is a clear trend toward electric mobility, numerous car manufacturers made a concerted effort in 2024 to keep sales of fossil fuel vehicles (gasoline and diesel engines) high. This was reflected in the sales figures for electric cars, whose growth rate slowed noticeably.
- Background: High margins on combustion engines and (still) comparatively low production capacities for electric cars led some companies to once again serve the market with reduced-price gasoline and diesel vehicles.
- Buyer behavior: Many prospective buyers took advantage of these offers to stock up on classic combustion engines before possible restrictions or price increases.
However, this approach cannot be repeated in 2025. This is because the CO₂ regulations that will come into force in 2025 will result in heavy fines if the proportion of new cars powered by fossil fuels is too high.
New CO₂ limits from January 1, 2025: Stricter requirements, higher costs
From January 1, 2025, a new, stricter CO₂ limit per kilometer driven will come into force in Switzerland. In concrete terms, this means that passenger car fleets will be allowed to emit significantly less on average than before.
- Financial consequences: Car dealers who do not switch to low-emission or zero-emission vehicles in time are already facing substantial fines. Some are even talking about millions of dollars if sales figures for electric and hybrid vehicles do not increase significantly.
- Greater pressure to innovate: In order to meet CO₂ targets, manufacturers will have to increasingly develop and promote new electric and hybrid models. Sustainable materials and more efficient production processes can also help to reduce the carbon footprint of vehicles.
This set of rules is an important step in advancing Switzerland on its path to greater climate neutrality—and could particularly affect those retailers who have so far been reluctant to embrace structural change.
Chinese electric models: potential for market flooding
One aspect that is only slightly noticeable today but could come to a head in 2025 is the growing range of Chinese electric vehicles on offer.
- Increasing competition: Chinese manufacturers such as BYD, NIO, and other newcomers have made enormous progress in terms of technology, design, and range in recent years. Thanks to their large production capacities, they are also able to offer high-quality vehicles at very competitive prices in some cases.
- Attractive price-performance ratio: Chinese electric cars are likely to be a serious alternative, especially for price-conscious buyers—particularly when well-known European manufacturers are struggling with rising prices due to high investment costs in electric mobility.
- Change in quality and image: While Chinese cars were often subject to prejudice in the past, not only has their quality improved in recent years, but so too has the image of many brands. Some models now perform on a par with established competitors in test reports.
Impact on distribution grid, charging infrastructure, and load management
The increasing number of electric vehicles poses new challenges for electricity suppliers and infrastructure planners:
- distribution network capacity
- As more and more Swiss people switch to electric mobility, the local distribution network must be expanded accordingly. More charging stations, especially in residential areas, lead to higher peak loads.
- Municipalities and energy suppliers are required to review and expand their grid capacities at an early stage. Without timely measures, bottlenecks could arise, leading to temporary power restrictions or even grid instability.
- charging infrastructure
- To keep pace with the e-boom, not only are more charging points needed, but also different types: from fast DC charging stations along highways to AC charging points in parking lots, garages, and public spaces.
- The federal government and cantons are increasingly focusing on support programs for expansion. There is an urgent need for charging infrastructure not only at fast-charging parks but also in underground garages where tenants want to charge their electric cars.
- Loadmanagement
While some regions are feeding more water, solar, and wind energy into the grid, peak loads must be strategically managed through charging processes. This is where intelligent load management comes into play at various grid levels.
Outlook: What does this mean for consumers and retailers?
- Broader range: The availability of electric cars and plug-in hybrids is likely to increase significantly. Both European manufacturers and Chinese newcomers are constantly bringing new models onto the market – in all price ranges and vehicle segments.
- Price pressure and subsidies: Stricter CO₂ limits are increasing pressure on dealers to offer more attractive prices/subsidies for electric and hybrid drives. Purchase premiums, leasing promotions, or other discounts could therefore be of interest to consumers.
- Infrastructure and services: The growing number of electric vehicles requires rapid expansion of the charging infrastructure, especially fast-charging stations along highways and in urban areas. In addition, the range of services on offer is growing, for example, mobile charging facilities and electric car-sharing services.
- Grid stability and convenience: Thanks to smart charging concepts, charging processes can be made more efficient in the future. This not only increases convenience for consumers, but also supports the stability and reliability of the Swiss power grid.
- New mobility concepts: In addition to outright car purchases and car sharing, subscription-based offers and car-as-a-service models are becoming increasingly important. Some providers in Switzerland are already experimenting with flat rates for electric cars that include maintenance, insurance, and electricity costs.
Conclusion
The future of electric mobility in Switzerland is facing a major upheaval from 2025 onwards. While car manufacturers made another attempt to sell as many fossil fuel vehicles as possible in 2024, the new CO₂ limits continue to put significant pressure on the combustion engine. At the same time, China is increasingly establishing itself as a major player in the global and Swiss electric car market.
However, with the growing proportion of electric vehicles, the demands on the Swiss distribution grid are also increasing. The expansion of the charging infrastructure and effective load management are crucial components in ensuring that e-mobility functions reliably and sustainably.
This creates an exciting situation for consumers: the selection of electric vehicles is growing, prices could fall due to subsidies and increasing competition, and ecological aspects such as lower emissions and more sustainable production are becoming increasingly important. Electric mobility is making its way into the Swiss automotive industry – and 2025 will go down as one of the key years in the history of sustainable mobility.
Photo: Wikipedia
