electric car sales continue to decline in Europe

The reduction, or even elimination, of aid for the purchase of all-electric cars, which exclude all types of fuel, in certain countries, largely contributes to this lack of enthusiasm among customers. Virtually all States forced to make budgetary savings have drastically reduced subsidies, to which must be added the still high level of interest rates which increases the cost of credit and that of leasing (long-term rental). While waiting for better days, and vehicles with greater autonomy, households are postponing their plans to acquire new vehicles.

In March, we were in an all-electric car market down 11.5% year-on-year in Europe. A clear slowdown which results in a logical decline in the market share of battery models: 13% of the total vehicles sold on the Old Continent.

A very different situation from one country to another

Italy leads the countries where sales fell the most in March year-on-year: -35%. Germany comes in second place with sales down 29%, France is an exception and saw its sales increase by almost 11% in March. A probably temporary phenomenon that is largely due to social leasing put in place on January 1st. Some 50,000 orders have been placed and deliveries by manufacturers are ramping up. But the system, which allows low-income households to rent an all-electric car for 100 euros per month for at least three years, is suspended and should resume next year.

The two flagships, Volkswagen and Stellantis, are the most affected: with respective declines of 9 and 25%. Renault limits the damage with minus 2%. The biggest drop in Europe goes to the American Tesla: -30%. Only Toyota is seeing its sales progress… all this in a European market which is seeing Chinese manufacturers arrive at knockdown prices: after BYD, the Chery group intends to mass produce and sell from Spain where it is setting up. A tough challenge for European manufacturers which will require them to make new investments and technological, and perhaps social, efforts.