The European electric vehicle market is facing a “steady downward trajectory”. The decline of electric vehicles (BEVs) across Europe has forced carmakers to adjust their strategies for developing this type of vehicle in the short term.
According to sales data released by the European Automobile Manufacturers Association (ACEA) in August, BEV sales totaled only 92,627 vehicles, down 43.9% year-on-year (165,204 vehicles). This sharp decline caused BEV market share to drop to 14.4% (down from 21% previously).
This is the fourth consecutive month of declining sales, mainly due to sharp declines in Europe's largest electric vehicle markets. The German car market saw a staggering 68.8% drop. Meanwhile, the French market was not far behind, with a drop of up to 33.1%.
However, the decline in the electric vehicle segment was also affected by the total sales of the entire market. At the end of August 2024, the total number of new vehicle registrations reached only 643,637 vehicles, down 18.3% compared to the same period last year. It can be said that this is the lowest sales result in the past 3 years.
On the other hand, sales of gasoline-powered vehicles fell 17.1% to 213,057 units. Sales of diesel-powered vehicles fell 26.4% to 72,177 units, while plug-in hybrid vehicles (PHEVs) fell 22.3% to 45,590 units sold. But only hybrid vehicles (HEVs) grew, recording a 6.6% increase to 201,552 units.
Meanwhile, up to now, the market share of electric vehicles in Europe accounts for only 12.6% with 902,011 new registrations. This shows an alarming situation for the automotive industry in general in Europe.
That’s largely because automakers have poured billions into electrification efforts to comply with stricter CO2 emissions regulations and prepare for Europe’s upcoming ban on internal combustion engine (ICE) vehicles by 2035. But they’re still facing the reality that consumers aren’t switching to electric vehicles as quickly as they originally predicted.
In its latest statement, the ACEA council pointed out a number of important factors that have caused the electric vehicle market to fall into a "continuous downward trajectory". Among the main challenges that can be seen are inadequate charging infrastructure, fierce competition in manufacturing, insufficient tax incentives to stimulate car purchases, and unstable supply of essential materials, etc.
