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Electric car revolution set to create over 1 million new jobs

New EV jobs set to more than double losses incurred in traditional car industry

11 December 2018

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Over one million new jobs are set to be created in the European electric car market by 2050, according to a new report from the European Association of Electrical Contractors (AIE).

The AIE study found that full electrification of the passenger car market across the current 28 members of the EU would generate 1.2 million jobs. These would largely be associated with the manufacturing, installation, operation and maintenance of charging points and batteries, and electricity generation.

Significantly, if only 35 per cent of new cars registered in the EU28 in 2030 are electric, nearly 200,000 jobs would be created in the sector. This figure could more than double the number that could be lost in the traditional car market as a result of the electric vehicle revolution.

Giorgia Concas, Secretary General of AIE, commented:

“The shift to electric cars is expected to create 200,000 new jobs by 2030, the majority for electrical contractors across Europe. Electromobility is a massive business opportunity for local companies to generate local, green, highly skilled jobs.”

Luke Osborne, Energy & Emerging Technologies Solutions Advisor at ECA, commented:

“Electric vehicles are a fast-evolving area. The benefits to both the economy and the environment are potentially huge. With regard to business opportunities, employment opportunities and the economic gains for society, the future looks bright.”

“If the government wants to ban sales of new petrol and diesel cars by 2040 and adhere to its Road to Zero plan, a robust public electric vehicle charging infrastructure will be a vital priority, especially for the 43 per cent of households without access to off-street parking.”

ECA provides guidance and professional advice to help its near 3,000 member businesses navigate the process of registering with the Office for Low Emission Vehicles (OLEV) in order to access and facilitate grants for EV installations. ECA has also produced comprehensive information and guidance relating to the 18th Edition Wiring Regulations (BS7671) and EV charging.

The AIE report can be read in full here. The report’s findings are based on figures relating to passenger vehicles and do not take into account buses, trucks and shipping vehicles which are also predicted to become electrified in the near future.

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Fig. 1: Breakdown of the 200,000 jobs that could be created in the EV sector, based on a moderate predicted uptake of EVs in Europe by 2030. Source: AIE

The UK accounts for around 15 per cent of new car registrations in the EU. AIE figures suggest that some 27,000 jobs could be created by 2030 if just 35 per cent of the British car market becomes electrified.

The UK Government has committed to banning sales of new petrol and diesel cars by 2040, although hybrid cars will still be permitted under the plans. The Government’s Road to Zero strategy has a target of half of all new car sales being ultra-low emission by 2030.

Figures published by the Society of Motor Manufacturers and Traders (SMMT) show that electric car sales in the UK have increased tenfold over the past few years, from a low base. The average for 2018 stands at 5,000 registrations a month, with more than 182,000 electric cars now registered in the UK. This represents 8 per cent of the overall UK car market.

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