EU CAR INDUSTRY CALLS FOR URGENT ACTION AS EV NEW CAR SALES TUMBLE

New car registrations fell sharply by 18.3% in August across the EU, as the four biggest markets all showed plummeting sales, with double-digit losses in Germany (-27.8%), France (-24.3%), Italy (-13.4%) and Spain (-6.5%).

The market share of electric vehicles fell even more dramatically, by 43.9% compared with the same time last year. Their market share counted for 14.4% in the EU compared with 21% a year ago. 

The latest figure was in sharp contrast with August 2023 figures which were outstanding for both new car sales and EVs, with both segments growing by +21%.

For the first eight months as a whole, the numbers look more promising, New car registrations showed a modest 1.4% growth compared with last year. French and German sales were slightly lower than last year but the Spanish and Italian market showed an improvement with a 4.5% and 3.8% increase respectively in new car sales.

Concerns grow as European EV sales falter

European car manufacturers are worried that, while EV sales are slow, the 2025 deadline to meet certain CO2 emission reduction targets for cars and vans is getting closer.

The industry is calling for policymakers to take urgent action to help, saying the required transition, to achieve overall CO2 fleet emission of 95 grams per kilometre by next year, will be costly not only to the carmakers but to the economy too.

"The European auto industry supports the Paris Agreement and the EU's 2050 transport decarbonisation targets and has invested billions in electrification to bring vehicles to market," said the statement of the European Automobile Manufacturers' Association (ACEA), which represents the 15 major Europe-based car, van, truck and bus makers. 

"We are missing crucial conditions to reach the necessary boost in production and adoption of zero-emission vehicles: charging and hydrogen refilling infrastructure, as well as a competitive manufacturing environment, affordable green energy, purchase and tax incentives, and a secure supply of raw materials, hydrogen and batteries. Economic growth, consumer acceptance, and trust in infrastructure have not developed sufficiently either.

It warns that, if the situation is not resolved, car manufacturers would be forced to either halt production of around two million cars or face heavy fines.

"We stand ready to discuss a package of short-term relief for the 2025 CO2 targets," the ACEA said.

2024-09-19T09:57:24Z dg43tfdfdgfd