The electric future in Macedonia: challenges, trends, and opportunities

Electric vehicle market

What is the share of electric vehicles in your total range and what is the sales trend?

All of our brands already have electric vehicles in their offer. About 20% of our total range are electric models, but their share in sales on our market is not sufficiently large for now. The trend in sales of electric vehicles is still unfavorable, but above all, it is unpredictable. We reached our highest point so far in 2023 with a share of electric vehicles of over 10% of our total sales. But the very next year, the share drop below 2%. Our market is unique in many ways in the region, we can even say in Europe. On the one hand, the regulation is favorable to electric vehicles – they are exempt from the obligation to pay motor vehicle tax upon import, which represents a price advantage of up to 20% of the value of the electric vehicle. But, on the other hand, the obligation to pay customs duties and/or VAT upon import is in force for all electric vehicles. There are no state subsidies for the import of electric vehicles in our country. There are also no incentives in form of privileged parking or exemption from tolls.

Subsidies and other benefits for electric vehicles are practiced in almost all European countries. In our closest neighborhood, Albania, with an exceptionally liberal system for import of electric vehicles and their complete exemption from taxation, achieves about 15% share of electric vehicles in annual sales. In Macedonia, the electrification of transport has not yet been placed in a state strategic framework.

Who are your clients, are companies or individuals more likely to invest in an electric vehicle and what do you think are the reasons for that?

Companies are more represented in the structure of clients and especially in the structure of clients who repurchase electric vehicles from us. EVN Macedonia is such a positive example and is currently our most regular and most dedicated client for purchasing electric vehicles with the most modern fleet of electric vehicles.

The reasons are multifaceted. Companies have more available funds, a greater and more frequent need to purchase new vehicles, more accurate cost analysis when choosing the best mobility option, the existence of corporate policies and rules for the share of electric vehicles in the fleet.



What are your forecasts for demand for electric vehicles in the next 3–5 years?

These forecasts are influenced by several factors, but it is certain that in the next 3-5 years the demand for electric vehicles will grow. At the moment it is difficult to quantify the growth in demand. We expect it to follow European trends, with a lag of 3-5 years. In the first half of 2025 there is an increased demand for electric vehicles in Europe and their share in sales is about 17%, with an increase of about 4% compared to the first half of 2024.

Our market is quickly mirroring negative trends from Europe (the sharp decline in demand for electric vehicles after the unexpected temporary abolition of subsidies in Germany at the end of 2023), and is slow to adopt positive trends (the relatively rapid recovery of demand for electric vehicles in Europe, and above all Germany, after the reintroduction of subsidies in 2024).

Non-electric vehicles are becoming increasingly expensive. Another price hike is expected in 2027 due to the introduction of the Euro 7 exhaust emission standard. Combined with the motor vehicle tax, from which they are not exempt, non-electric vehicles will become increasingly expensive, and the price difference with electric vehicles will decrease, and in some cases will disappear, making electric vehicles a more attractive, more justifiable and more logical choice.

Considering the purchasing power, inertia, and adherence to old habits of our average buyer, we will be satisfied if we reach a 15% share of electric vehicles in new vehicle sales in 5 years.

What are the biggest challenges you see in the sales and distribution of electric vehicles in Macedonia?

The main challenge is in sales, it is habits and unwillingness to consider new possibilities. We cannot accept that charging and maintaining an electric car is simple, in principle easily accessible and in the long run much cheaper than charging and maintaining a non-electric car.

On average, between 10,000 and 15,000 km are driven annually in our country. With these usage figures, and with a range of electric vehicles between 300 and 400 km in practice, charging becomes a topic only on longer distances, and once or twice on a longer trip. For daily use, practice shows the need for charging 1 to 2 times a week for partial charging of the battery, not full charging. All drivers who have their own parking space can install a charging socket and charge the vehicle overnight, with almost no commitment. On longer distances, the chargers from the increasingly developed EVN charging network are helpful, so that trips become simpler, more pleasant and, above all, cheaper.



How is interest in hybrid vehicles changing compared to fully electric ones?

Let me emphasize right away that hybrid vehicles are not an alternative to electric vehicles.
Hybrid vehicles as a technology have been available for about 25 years, with a significantly increased demand in the past 3-4 years. The experience of driving a hybrid car is very similar, practically identical to the experience of driving a petrol or diesel car. Only in short intervals of time when starting off hybrid cars achieve some of the refinement and dynamism of electric cars. As soon as the internal combustion engine is activated, you return to the past. The fuel consumption of hybrids is slightly superior in city driving conditions, but when driving on the highway they consume more than ordinary petrol or diesel vehicles.

Electric vehicle owners recognize the differences and advantages of fully electric vehicles and are not willing to sacrifice the advantages just for the opportunity to fill up at a petrol station. Especially customers who have both a hybrid and an electric car clearly know and appreciate the advantages of electric propulsion – maximum refinement, absence of noise and vibrations, instant and dramatic acceleration, perfectly utilized passenger and luggage space, low costs and zero CO2 emissions during use.

In summary, hybrid vehicles are just an easier-to-accept transition to electrified propulsion in conditions of a still underdeveloped charging network and in the absence of habits and readiness to accept new technologies.

How do you assess the infrastructure for electric vehicles in Macedonia and how does it affect sales?

This is the key issue for greater acceptance of electromobility.
Within our national framework, the charging infrastructure is currently on the verge of meeting the needs of existing users. Unfortunately, the charging infrastructure in our country is not yet sufficiently developed to attract new users of electric vehicles. However, an excellent trend is the increase in the number of EVN Macedonia fast DC chargers at strategic locations and on road routes in 2024 and 2025. If this trend continues and if the number of locations with fast DC chargers doubles during 2025 and 2026, we will already be able to rate the charging infrastructure as good or better.

Characteristics of electric vehicles

How informed are buyers about the energy consumption of electric vehicles and how can it positively impact their costs?

We make sure to present the advantages and lower costs of electric vehicles at every opportunity – at open days with test drives, at organized events with the theme of Electromobility or in daily communication with customers.

Our own long term experience, which we constantly share with our customers, shows that the use of electric vehicles is both possible and cheap, and very often more simple than the use of non-electric vehicles. Our work continues.
We cannot stop progress. The future of mobility is electric, and resistance to it is futile.

What is the availability of spare parts and service for electric vehicles?
 
In the case of the Volkswagen Group and Porsche Macedonia with its dealer network, we can freely say that the availability of spare parts and service for electric vehicles is identical to that for non-electric ones and is absolutely the best on the market.

An additional advantage for electric vehicle users is the lower need for maintenance of electric vehicles, as well as the statistically lower probability of defects occurring – especially in the drive system – due to the much smaller number of components.

Satisfaction and perception of EVN Supply

How do you evaluate your experience so far in cooperation with EVN Supply?

Overall, our experience with EVN has been positive and we appreciate their support and professionalism. The cooperation in planning our infrastructure was successful, it consisted of a request to connect our substation to their medium-voltage network, which was implemented in a timely and professional manner.

In addition, we regularly present to each of our customers the electromobility website (https://emobility.evn.mk/) where all chargers across Macedonia are displayed. Also, all users of electric vehicles from Porsche Macedonia have an EVN charging card, which enables a practical and efficient service.
 
Are you satisfied with the stability and quality of electricity delivery?

The supply is stable and reliable, without significant or frequent interruptions. When technical interventions or planned outages are carried out, information is communicated in a timely manner, which allows for timely preparation. The voltage quality is stable and adequate, which allows for the smooth and safe operation of all electrical devices.