HomeAutomobileSharp decline in sales of electric cars in Europe

Sharp decline in sales of electric cars in Europe

While hybrids continue to make progress in new car sales in Europe in July, the market share of electric vehicles falls to 12.1%.

Sales of new cars in the European Union (EU) rose by 0.2% in July to 852,000 units, held back by declines in France and Germany, according to data from the European Automobile Manufacturers Association (ACEA) published on Thursday, August 29.

Electricity falling

The market share of 100% electric cars fell to 12.1% in the EU, with 102,705 units, compared to 13.5% in July 2023.

This situation is explained by the sharp decline in electric car registrations in Germany, -37% in July, following the end of purchase aid at the beginning of the year.

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The positive figures, always 100% electric, in the Belgian (+44%), Dutch (+9%) and French (+1%) markets have not been able to offset the drop recorded in the first European market.

The hybrid continues to progress

On the other hand, hybrid (non-rechargeable) cars continue to attract an increasing number of motorists. In July, this engine type increased by 25.7% to 273,000 units, with double-digit growth in the 4 main markets: France (+47.4%), Spain (+31.5%), Germany (+22.4%) and Italy (+17.4%).

The plug-in hybrid fell by 14.1% to 57,679 units in July. Its market share stands at 6.8%, compared to 7.9% last year.

On the plus side, cumulative sales of so-called “electrified” cars (which include 100% electric, classic and plug-in hybrid models) accounted for 50.9% of the market, up from 47% in July 2023.

MG in strong progress

Registrations of Europe’s three largest carmakers, Volkswagen, Stellantis and Renault, fell in July from a year earlier, by 2.2%, 5.2% and 1.7% respectively, due to increasing competition from China.

Sales of electric vehicle maker Tesla fell 14.7%, while those of Chinese manufacturer SAIC Motor (MG brand) rose 24.2%.

On August 20, the European Commission reduced the increase in customs duties it was considering on imports of Model 3s assembled by Tesla in China to 9%. This is the lowest rate of surcharge for the affected European manufacturers.

Stellantis, which posted the biggest drop in sales among EU carmakers, reported a bigger-than-expected drop in revenue and operating profit for the first half, also due to internal operational problems.

Author: Julien Bonnet, with Reuters
Source: BFM TV

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