The European electric vehicle (EV) market faces a significant challenge following the dramatic decline in registrations in August 2024.
Despite technological advancements and sustainability ambitions, the month saw a 33 per cent drop in EV matriculations, the lowest level since January 2023, according to market research firm Rho Motion.
This decrease has raised alarm bells across the industry, which is closely monitoring how economic and political factors might be affecting the transition to electric mobility.
Europe needs long-term investments
Chris Heron, AVERE‘s General Secretary, noted that the electric mobility ecosystem faced a difficult summer, marked by a slowdown in sales and a pause in some key investments.
Furthermore, the growing prominence of other countries in the field of sustainable mobility has begun to concern some industry players.
Despite these challenges, Heron emphasized that AVERE remains committed to its mission of keeping Europe on track towards its goal of zero-emission vehicle sales by 2035.
Heron stressed that investments in electric mobility have the potential to generate long-term benefits, both for people and European industries.
France: Recovery expectations for the fourth quarter
In France, the outlook is not much different.
Clément Molizon, General Delegate of AVERE France, expressed concern over the 2024 electrified vehicle registration figures, questioning whether the year might close with lower numbers than 2023.
In fact, August 2024 saw 20,577 electric and plug-in hybrid vehicle registrations, a 32.5 per cent drop compared to August 2023, with plug-in hybrids particularly affected after five consecutive months of decline.
According to the expert, this underperformance must be seen in the context of a broader automotive downturn, as this period marked the fourth consecutive month of reduction in registrations and the worst August in a decade for the passenger car market.
However, Molizon remains confident that the arrival of new models in the fourth quarter, along with improvements in charging infrastructure, will help revitalize the market.
Economic uncertainty and political tensions in Europe have affected consumer confidence, but industry leaders agree that a firm approach and stable policies can rekindle demand.
Germany: A historic drop in EV registrations
Andre Schmidt, President of VDIK, addressed the August registration figures, noting that “a special effect is contributing to the historic decline of over two-thirds in BEVs”.
He explains: “Following the announcement to eliminate the purchase premium for commercial customers in September 2023, registrations of purely battery electric vehicles (BEVs) reached their peak in August of the previous year. Thus, the current downturn is not entirely unexpected, though it is still quite severe.”
New passenger car registrations in Germany decreased by 27.8 per cent in August, amounting to 197,322 cars compared to the same month last year.
BEVs were particularly affected, as they experienced the steepest decline ever recorded for this month.
Specifically, only 27,024 zero emmissions automobiles were registered last month, representing an alarming 68.8 per cent drop from the robust numbers seen in the previous year.
Italy: The data indicates a confusing market trend
The Italian electric vehicle market also experienced a slowdown in August, with only 2,410 fully electric cars registered, marking a 40.6 per cent decline compared to the same month in 2023.
This brought the market share down to 3.5 per cent, down from 5.1 per cent a year earlier.
In the first eight months of 2024, Italy saw 41,254 electric cars registered, a slight one per cent increase from the same period last year, maintaining a market share of 3.8 per cent, comparable to 3.9 per cent in January-August 2023.
As of August 30, the Italian electric vehicle fleet consisted of 256,493 cars.
Fabio Pressi, President of Motus-E, commented: “The data indicates a very confusing market trend, with extraordinary peaks following the Ecobonus incentives alternating with periods of apparent stagnation, as motorists interested in switching to electric remain unsure about the evolving landscape.”
He added: “To avoid a dangerous spasmodic trend in the market, it is essential to quickly and clearly plan the incentive tools discussed in the recent Automotive Table meeting.”
Pressi emphasized the importance of enhancing public charging infrastructure, alongside expanding private charging at home and work, concluding that “revising company car taxation is a crucial lever for stabilizing the growth of electric mobility in Italy.”
Norway: Unveiling the truth behind Europe’s EV sales decline
Between January and August 2024, electric vehicle sales across the EU fell by eight per cent compared to the previous year.
However, this decline follows a record-setting 2023, where Germany’s abrupt removal of EV subsidies in August led to a temporary sales spike.
As a result, this year’s figures reflect the absence of such incentives rather than an overall downturn in demand.
Sveinung Kvalø, senior advisor at the Norwegian Electric Vehicle Association, noted that the industry’s portrayal of stagnating sales could be influenced by a desire to push back against tighter EU emission regulations set to take effect in 2025.
“The truth is that most European countries have seen steady growth in electric car sales. Germany’s sharp decline skews the overall numbers, but that’s only because last year’s figures were artificially inflated due to expiring incentives,” he states in a recent report.
Kvalø explains: “What we are seeing, is car manufacturers trying to slow down the transition to EVs by blaming consumer demand, when in reality, they’re resisting necessary changes.”
He concluded by saying: “If the European car industry wants to stay competitive, it must invest in zero emission vehicles rather than fight to preserve fossil-fuel cars. Electrification is the future—there’s no avoiding it.”
Spain: A slowing market with optimistic prospects
Throughout 2024, Spain’s electric mobility market has shown signs of slowing, mirroring trends seen across Europe.
Arturo Pérez de Lucia González, Managing Director of AEDIVE and Vice President of AVERE, highlighted that electrified vehicle registrations fell by 7.3 per cent up to August.
However, as Molizon, the executive remains optimistic about the expectations for the fourth quarter.
The arrival of new models with competitive prices, around 13,000 euros thanks to subsidies, coupled with the expansion of the MOVES programme, could be the boost needed to reignite demand.
This programme, which encourages the purchase of electric vehicles, is crucial in reducing the financial barriers faced by many consumers.
Switzerland: Electric mobility hits a rough patch
Switzerland saw a decrease in EV registrations too, with only 3,421 units registered compared to 4,289 in August 2023, marking a decline of 20.2 per cent.
This factor can be related to the fact that the promotion of electromobility is largely the responsibility of the cantons, which are implementing tax reductions and incentives for charging point installations.
However, sources from the Swiss eMobility Association report that “national policy lacks the motivation to adequately support the industry, both financially and through a more favorable legal framework.”
“Currently, there is only one measure based on the voluntary participation of all stakeholders,” they added.
This year has also seen the reintroduction of a four per cent federal import tax, which has dampened market enthusiasm.
Representatives of the association noted that “while the Ministry of Transport intends to establish charging stations along motorways, the level of support remains minimal.”
Although cantons occasionally reduce vehicle taxes or provide subsidies for wallbox installations, these initiatives do not appear to be sufficient to significantly enhance the market.
