ACEA estimates that European consumers are now much more likely to choose hybrid cars, as their sales have increased by around 22% in the first half of this year. All these statistics are nothing more than signs that the electric car market in Europe is a little out of breath. We will have to wait for the previously planned faster transition to electric cars.
“According to ACEA’s calculations, electric cars accounted for 13.6 percent of the total in July. of all new car sales in the European region, when last year this number reached 14.5 percent. On the other hand, sales of gas-powered cars (8.4%) and diesel cars (11%) also decreased. It is interesting that, according to the data of “Regitra”, by 2024 in September, a total of approximately 1% was registered in Lithuania. more passenger cars than in the same period last year, but if we look at electric cars, our country is fully in line with the current trends in Europe”, says Finpro board member Kęstutis Grinaveckas.
He adds that by September of this year, approximately 300 fewer electric cars were registered in Lithuania than in the same period last year, and the market share of electric cars in our country has decreased by more than a percent compared to last year and now stands at 5.4 percent.
In addition, the fact that consumers are currently much more inclined to choose hybrid cars instead of electric cars is also shown by the statistics of the Finpro company. For example, recently businesses in Lithuania are much more likely to look for financing to buy a hybrid car than an electric one. Businesses are more inclined to purchase gasoline-powered cars, the price of which ranges from EUR 10,000 to EUR 40,000. Currently, the business is particularly fond of Toyota and Volkswagen cars.
Competition, economic situation and the attitude of states
Table of Contents
- 1 Competition, economic situation and the attitude of states
- 2 What factors are contributing to the decline in electric car sales in Europe?
- 3 Increasingly popular among consumers. This shift is influenced by various factors including competition, economic pressures, and governmental policies. As a result, electric car sales are facing challenges, and manufacturers must adapt to these changing market dynamics.
Table of Contents
As emphasized by the Association of European Automobile Manufacturers, European car sales are especially stagnant, because in Germany, which is the biggest player in the car market in Europe, the demand for electric cars is decreasing.
“Incentives for the purchase of electric cars have already become commonplace in most European countries. For example, private individuals in Lithuania are currently compensated 5,000 euros for a brand new electric car, and 2,500 euros for a used one. However, if the situation in our country encouraging the purchase of an electric car is still favorable, it has not been like this in Germany for almost half a year.
In December of last year, the German authorities ended subsidies for electric cars in their country, a whole year ahead of schedule. This automatically led to the tendency of consumers to buy cheaper hybrid cars or cars powered only by internal combustion engines”, asserts K. Grinaveckas.
It was immediately predicted that in 2024 the share of battery-only cars in Germany will drop to around 15%, from almost 20% previously.
According to the expert, the largest German car manufacturer Volkswagen is now planning to close at least several factories and is increasingly openly admitting that one of the main reasons that complicates the prospects of the European electric car market is the competitive tension with China, which heavily subsidizes its electric car industry.
Meanwhile, previously more bullish carmaker Mercedes-Benz has also tempered its positive outlook for electric cars this year and also openly admits that the transition from internal combustion engine-powered cars to electric cars will take longer than expected.
Those who are interested in the car market are well aware that the European Union (EU) has set a deadline (2035) by which car manufacturers will have to phase out sales of new vehicles powered by internal combustion engines.
The representative of “Finpro” points out that at the beginning of this year we could be happy that everything is moving in the right direction in the implementation of such a goal, as sales of new passenger cars in Europe increased by 13.9 percent in 2023, and electric cars surpassed diesel-powered cars in terms of demand for the first time. cars. According to the European Automobile Manufacturers Association, 37 percent of electric cars were purchased last year. more than last year.
On the other hand, the latest statistics sent a clear message that a successful and timely transition to electric cars should be looked at and talked about a little more carefully. There are a number of headwinds prevailing in the electric car market in Europe, which do not necessarily always blow in a positive direction.
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#Stormy #winds #European #car #market #wait #faster #transition #electric #cars #Business
2024-09-18 08:56:08
What factors are contributing to the decline in electric car sales in Europe?
European Consumers Shift Towards Hybrid Cars as Electric Car Sales Stall
The European electric car market is experiencing a slowdown, with sales of battery-only vehicles declining in the first half of 2024. According to the Association of European Automobile Manufacturers (ACEA), hybrid cars have become the preferred choice for European consumers, with sales increasing by around 22% in the same period. This shift in consumer preference has led to a decline in the market share of electric cars, which accounted for 13.6% of total new car sales in Europe in July, down from 14.5% last year.
Lithuania Follows European Trends
In Lithuania, the trend is similar, with around 1% more passenger cars registered in September 2024 compared to the same period last year. However, electric car sales have decreased, with approximately 300 fewer electric cars registered in Lithuania than in the same period last year. The market share of electric cars in Lithuania has also dropped to 5.4%, down from over 6% last year.
Financing and Business Inclinations
Finpro, a company that provides financing solutions, has seen a shift in demand from electric cars to hybrid cars among businesses. Many companies are opting for financing options to purchase hybrid cars, which are seen as a more affordable and practical alternative to electric vehicles. The company has also noticed a preference for gasoline-powered cars priced between €10,000 and €40,000, with Toyota and Volkswagen being the most popular brands.
Competition, Economic Situation, and State Attitudes
The stagnation in European car sales is attributed to various factors, including the decline in demand for electric cars in Germany, the largest car market in Europe. The German government ended subsidies for electric cars in December last year, leading to a decrease in sales. Additionally, the competitive environment and economic situation in Europe are affecting the electric car market.
Experts point out that the European Union’s deadline of 2035 to phase out internal combustion engine-powered cars may not be met, given the current market trends. The transition to electric cars is expected to take longer than expected, and car manufacturers are adapting their strategies to cope with the changing market.
Challenges Facing the European Electric Car Market
The European electric car market is facing several challenges, including:
- Competitive tension with China: China’s heavy subsidization of its electric car industry is putting pressure on European manufacturers.
- Economic situation: The current economic climate is affecting consumer spending habits, leading to a preference for more affordable hybrid cars.
- State attitudes: The reduction or elimination of subsidies for electric cars in countries like Germany is discouraging consumers from buying electric vehicles.
Conclusion
The European electric car market is experiencing a setback, with sales declining in the first half of 2024. Hybrid cars have become the preferred choice for consumers, and the market is expected to continue shifting towards more affordable and practical alternatives. Car manufacturers and policymakers must adapt to these changing market trends and address the challenges facing the electric car market in Europe.
Keywords: electric cars, hybrid cars, European car market, ACEA, Finpro, Lithuania, Germany, China, European Union, 2035 deadline.
Increasingly popular among consumers. This shift is influenced by various factors including competition, economic pressures, and governmental policies. As a result, electric car sales are facing challenges, and manufacturers must adapt to these changing market dynamics.
The Electric Car Market in Europe: A Slowing Down Trend?
The Association of European Automobile Manufacturers (ACEA) has revealed some striking statistics regarding the electric car market in Europe. In the first half of this year, hybrid car sales have increased by approximately 22%. This surge in hybrid car sales has led to a decline in electric car sales, with electric cars accounting for only 13.6% of all new car sales in the European region in July, a drop from 14.5% last year.
What’s driving this trend?
According to Finpro board member Kęstutis Grinaveckas, consumers are now more likely to choose hybrid cars over electric cars. He notes that by September of this year, approximately 300 fewer electric cars were registered in Lithuania than in the same period last year, resulting in a decrease in the market share of electric cars in the country to 5.4%.
Competition, Economic Situation, and the Attitude of States
The stagnation of electric car sales in Europe can be attributed to various factors, including competition, economic situation, and the attitude of states. The German car market, which is the largest in Europe, has seen a decline in demand for electric cars. The German authorities ended subsidies for electric cars in December last year, a year ahead of schedule, leading to consumers opting for cheaper hybrid cars or cars powered only by internal combustion engines.
Impact of Chinese Subsidies
The European electric car market is also facing stiff competition from China, which heavily subsidizes its electric car industry. This has led to European car manufacturers, such as Volkswagen, planning to close factories and admitting that the transition to electric cars will take longer than expected. Even Mercedes-Benz, which was initially bullish on electric cars, has tempered its outlook for this year.
Economic Situation
The economic situation in Europe is also a significant factor contributing to the decline in electric car sales. With rising inflation and economic uncertainty, consumers are becoming more cautious in their purchasing decisions, opting for more affordable options.
Attitude of States
The attitude of states towards electric cars is also playing a crucial role in the stagnation of the market. While some countries, such as Lithuania, continue to offer incentives for electric car purchases, others, like Germany, have ended subsidies, making electric cars less attractive to consumers.
What Factors are Contributing to the Decline in Electric Car Sales in Europe?
Several factors are contributing to the decline in electric car sales in Europe, including:
Competition from hybrid cars and cars powered only by internal combustion engines
Economic uncertainty and rising inflation
Stiff competition from China’s heavily subsidized electric car industry
Changes in government policies and incentives for electric car purchases
* Consumer reluctance to adopt electric cars due to range anxiety and limited charging infrastructure
Conclusion
The electric car market in Europe is experiencing a slowdown, with hybrid cars becoming
