Askume, Sept 19 – European Union new car sales fell 18.3% in August, the lowest in three years, according to data from the auto industry body. The decline was due to double-digit losses in key markets Germany, France and Italy, as well as lower electric vehicle (EV) sales.
Data showed electric car sales fell for a fourth consecutive month, with the European Automobile Manufacturers Association (ACEA) calling for “urgent action” to prevent further declines.
“The industry needs urgent relief measures from EU agencies before new CO2 emissions targets for cars and vans come into force in 2025,” the report says.
ACEA said pure electric vehicle sales fell 43.9% in August, with Germany and France, the EU’s biggest electric vehicle markets, dropping 68.8% and 33.1%, respectively.
Meanwhile, registrations of plug-in electric vehicles fell by 22.3% across the 27 member countries.
Sales at Europe’s three leading automakers, Volkswagen (VOWG_p.DE) , Stellantis (STLAM.MI) and Renault (RENA.PA) , fell 14.8%, 29.5% and 13.9%, respectively, compared with the same period last year.
Car sales in Europe remain below pre-COVID-19 levels, and Volkswagen (VOWG_p.DE) said in September that trend was likely to continue for the foreseeable future.
Sales at electric carmaker Tesla Inc (TSLA.O) fell 43.2% in August, while those at China’s SAIC Motor Corp (600104.SS) dropped 27.5%.
The drop in EV sales is partly due to differences in EU green incentives and regulators banning cheap Chinese electric vehicles. High tariffs have been imposed to exclude China , which could drive up purchase prices.
To revive the market, Germany in SeptemberAgreement to give up to 40% tax exemption to companies selling electric vehicles .
However, the Transport and Environment campaign group said the market would improve and expected all-electric vehicles to be sold entirely by 2025.This would be 20% to 24% of the total EU market share, mainly due to lower selling prices.
Hybrid electric vehicles (HEVs) have become popular in the EU in recent months as buyers see them as an affordable compromise between fully combustion and fully electric.
ACEA data shows hybrid vehicle sales rose 6.6% in August, with a market share of 31.3%.
