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EU Car Registrations Plunge as Electric Vehicle Sales Decline
New car registrations in the European Union dropped significantly by 18.3% in August, with the four largest markets experiencing substantial declines. Germany saw a dramatic 27.8% decrease, followed by France with a 24.3% drop, Italy at 13.4%, and Spain with a 6.5% decline.
Electric vehicle (EV) sales were particularly affected, plummeting by 43.9% compared to the same period last year. EVs now represent 14.4% of the EU market, down from 21% in August 2023. This sharp decline contrasts with the previous year’s figures, which had shown a robust 21% growth in both new car sales and EV registrations.
However, the year-to-date statistics offer a more positive outlook. For the first eight months of 2024, new car registrations have shown a modest growth of 1.4% compared to the previous year. While sales in France and Germany have seen slight reductions, the Spanish and Italian markets have experienced improvements, with increases of 4.5% and 3.8% respectively.
The decline in EV sales is raising concerns among European car manufacturers, who are facing mounting pressure as the 2025 deadline for CO2 emission reduction targets approaches. The European Automobile Manufacturers’ Association (ACEA), representing major European car, van, truck, and bus manufacturers, has called on policymakers to address the challenges the industry faces.
The ACEA highlights that while the industry has invested billions in electrification and supports the EU’s 2050 decarbonisation goals, several critical conditions are lacking. These include adequate charging and hydrogen refilling infrastructure, a competitive manufacturing environment, affordable green energy, and sufficient incentives for purchase and tax. Additionally, issues related to the secure supply of raw materials, hydrogen, and batteries, as well as consumer acceptance and trust in infrastructure, remain unresolved.
The ACEA warns that if these issues are not addressed, car manufacturers might be forced to halt the production of up to two million cars or face substantial fines. The association is urging for a “short-term relief package” to help meet the 2025 CO2 targets and support the transition towards zero-emission vehicles.
The European auto industry continues to grapple with the complexities of transitioning to electric mobility while striving to meet stringent environmental regulations. The coming months will be critical in determining how effectively the sector can adapt to these challenges.
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