Reported about 1 year ago
The number of new car registrations in Europe dropped in May, with electric car sales decreasing by over 10% compared to the same period last year and a slight reduction in market share, mainly due to high prices dampening consumer demand. However, a non-governmental organization indicated that sales are expected to improve next year after the EU issues new carbon reduction targets. The European Automobile Manufacturers' Association (ACEA) revealed a 2.6% year-on-year decrease in new car registrations across the entire European market, including the EU, UK, and the European Free Trade Association (EFTA) countries, with the EU region experiencing a 3% decline for the second consecutive month this year. Pure electric car registrations in the EU dropped by 12% in May, with Germany seeing the largest decline of 30%, as the country reduced electric car purchase subsidies in December last year. France and Belgium were the only two EU countries where sales of pure electric cars grew. Tesla's sales in the EU decreased by 34.2% last month, marking the worst performance ever. Despite the decline in market share for pure electric cars in the EU, the market share for plug-in hybrid cars increased from 25% to 29.9%. Factors inhibiting the growth of electric car sales in Europe include the cessation or reduction of electric car purchase subsidies in countries like Germany and Sweden, high selling prices, and consumer dissatisfaction with pricing and inadequate charging infrastructure. While Volkswagen, Stellantis, and Renault plan to introduce affordable car models priced around €25,000 (approximately $26,865) next year, high borrowing costs in Europe and a weak economy have also dampened consumer sentiment. Additionally, consumer aversion to high pricing and poor charging facilities has presented challenges for car manufacturers in accelerating electric car sales. Stellantis and Renault saw a 6.9% and 5.4% year-on-year decrease in new electric car registrations in the EU last month, while Volkswagen and Toyota experienced a 1.6% and 13% increase, respectively. The EU will impose a temporary anti-subsidy duty of up to 38.1% on electric cars imported from China starting in July, aiming to protect local manufacturers from the impact of low-cost imported electric vehicles.
Source: YAHOO