Automakers have urged Europe to further stimulate demand for battery-powered electric vehicles after sales of all new cars in June fell the most in ten months. The European Automobile Manufacturers’ Association reported that new EV registrations fell by 5.1% to 1.24 million, writes UNN with reference to Bloomberg.
Details
It is reported that while demand for battery-powered electric vehicles continues to grow, sales this year have increased at the slowest pace.
Consumers, apparently, remain cautious, and stricter demand measures will remain a crucial element to accelerate the transition
European car manufacturers can hardly afford any decline in demand for electric vehicles in their domestic market. Volkswagen AG, BMW AG, and Mercedes-Benz Group AG continue to lose ground in China, where increasingly competitive domestic manufacturers are squeezing both sales volumes and prices.
Other major players are facing challenges in senior management, for example, Stellantis NV recently appointed a new chief executive officer, and Renault SA is looking for a permanent CEO.
The European Commission has somewhat eased pressure on automakers, giving them a three-year window to meet stricter carbon emission targets that were supposed to take effect this year.
However, for those manufacturers operating in the US, President Donald Trump’s tariffs on imported cars and parts have put billions of euros in profit at risk.
The biggest source of the volume decline last month was Germany, the region’s largest car market. Registrations fell by 14% in June and by 4.7% in the first half of the year. Sales also fell by 17% in Italy and by 6.7% in France last month.
Across the region, plug-in hybrids remain a positive development. Registrations rose by 38% in June, as buyers increasingly opt for models that combine electric vehicles with a backup internal combustion engine.
Sales of fully electric vehicles increased by 14% for the month, driven by new model launches and continued government incentives in some countries. Nevertheless, the pace of adoption remains uneven across Europe, reflecting uneven infrastructure and divergent national policies.
Last week, the UK reintroduced grants of up to £3,750 ($5,100) to support EV purchases, three years after the previous government scrapped subsidies for private buyers. New car sales in the country rose by 6.7% in June.
Addition
Elon Musk’s Tesla is experiencing a crisis in the US electric vehicle market due to high prices, lack of charging infrastructure, and decreasing demand. Analysts predict a decline in demand due to tariffs, failed deliveries, and the cessation of subsidies.
