Sales of new passenger cars in the EU rose 10% in February compared with February last year as automakers including Volkswagen AG and Stellantis NV made up for backlogs. At the same time, the market share of electric vehicles remained the same. Bloomberg reports this.
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According to the European Automobile Manufacturers Association, last month the number of registered cars increased to 995,059 units. Battery-powered cars have failed to gain a large market share after falling demand in markets including Germany and Sweden.
It is noted that automakers in the region have started the year well, but high loan costs and a recession in Germany, the largest car market in the EU, may push buyers away from car purchases.
Some countries are phasing out subsidies for electric vehicles, which have boosted demand for these cars for years.
“Subsidies should not last forever, but we need them now,” said Renault SA CEO Jean-Dominique Senard during a hearing in the French Senate on Wednesday.
It is noted that Germany’s December decision to abolish subsidies will significantly destabilize the market electric vehicles, which could lead to a certain decline, especially in 2024.
Sales of electric vehicles in Germany fell 15% in February, even as manufacturers such as Volkswagen tried to compensate for reduced government aid with their own discounts.
Poor charging infrastructure remains a barrier to wider adoption of electric cars in Europe.
Customers are increasingly buying models with both a battery and an internal combustion engine: sales of hybrid cars in February grew by 12%, outpacing not only the growth of all-electric cars, but also gasoline-powered models.
As a result, automakers including Mercedes-Benz Group AG and Audi are scaling back their electric vehicle strategies. Renault SA, which this year is betting on a significant update of its cars, is negotiating with colleagues about a partnership to create more affordable electric vehicles.