Growing preference for electric vehicles contributes to market balance, slightly easing volatility
Electric Vehicle Demand Surges, Helps European Car Market Grow
The demand for electric vehicles (EVs) has experienced a significant increase in April, according to the European Automobile Manufacturers' Association (ACEA). This rise in EV demand has contributed to a 1.3% growth in the number of vehicles newly registered in the European Union, as compared to last year.
Notably, over 145,000 more electric vehicles were purchased in April, marking a 33% increase in sales. The surge in EV sales has increased their market share to 15.3% in the first four months of the year, up by three percentage points compared to the same period last year.
Despite the growing popularity of electric vehicles, Sigrid de Vries, ACEA's Director-General, notes that conditions need to be improved for electric cars to be established in the broader market. She advocates for the continuation of purchase incentives and fiscal support, the expansion of charging infrastructure, and more favorable electricity prices.
Hybrid vehicles, which have batteries that are charged during the journey, also witnessed increased demand. If plug-in hybrids, whose batteries can also be charged at the socket, are included, around 43% of new cars in the EU are now hybrids. Conversely, traditional petrol and diesel cars have gone out of favor with consumers.
Among individual manufacturers, the Volkswagen Group, which includes brands like Volkswagen, Skoda, Audi, and Porsche, continues to lead the market. The company sold almost 260,000 cars in the EU in April, marking a 2.9% increase in sales. BMW achieved a sales increase of almost 10%, while Mercedes sold 46,415 vehicles, a 0.7% increase compared to last year. Stellantis, with brands like Opel, Peugeot, and Fiat, sold 1.1% fewer vehicles, and Toyota recorded a 8.6% decrease in sales. Tesla, the US manufacturer led by Elon Musk, saw a significant sales decline of over 50%.
Sources: ntv.de, RTS
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The surge in electric vehicle (EV) demand, driven by lifestyle changes and technology advancements, has played a key role in the growth of the European car market. For a sustainable and wider adoption of EVs, Community policy should focus on improving conditions, such as the continuation of purchase incentives, expansion of charging infrastructure, and more favorable electricity prices for small and medium-sized undertakings (SMEs) and individuals. As more consumers embrace electric-vehicles, this trend may impact the European auto industry and the overall economic landscape of SMEs.
