Askume, Sept 19 – Data released by the European auto industry body on Thursday showed new car sales in the European Union fell 18.3% in August, the lowest level in three years, with double-digit declines in major markets Germany, France and Italy.
The European Automobile Manufacturers Association (ACEA) said sales of pure electric vehicles fell 43.9% in August, the fourth consecutive month of decline; among them, the EU’s largest electric vehicle markets Germany and France fell 68.8% and 33.1% respectively.
Why is this important?
Car sales in Europe are already well below pre-COVID-19 levels, with automakers such as Volkswagen AG (VOWG_p.DE) warning that the trend is unlikely to change in the near future.
Electric vehicle sales growth has also slowed, partly due to differences in green incentives and regulationsImposing high tariffs to prevent the entry of cheaper Chinese electric cars .
By number
In August, sales of pure electric vehicles and plug-in vehicles fell 43.9% and 22.3%, respectively, while hybrid vehicle sales rose 6.6%, with a market share of 31.3%.
Registrations at Europe’s three biggest carmakers Volkswagen, Stellantis (STLAM.MI) and Renault (RENA.PA) fell 14.8%, 29.5% and 13.9% respectively compared with the same period last year.
Sales at electric carmaker Tesla Inc (TSLA.O) fell 43.2%, while those at China’s SAIC Motor Corp (600104.SS) dropped 27.5%.
situation
Hybrid electric vehicles have increased their market share in the EU in recent months as buyers see them as an economic compromise between full-combustion and full-electric.
Germany agreed in September to introduce tax cuts of up to 40% for companies selling electric vehicles .
However, the Transport and Environment campaign group said earlier this week that the overall market share of electric vehicles in the region would fall to 20% to 24% by 2025 , mainly due to low selling prices.
