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Will electric cars remain in stock?

2024-08-30 14:45:14Biznes SHKRUAR NGA REDAKSIA VOX
Will electric cars remain in stock?
Will electric cars remain in stock?

In July , about 37% fewer electric vehicles were registered  in Germany than in the same month last year. In Europe, electric vehicles have lost market share - from politics to state manufacturers' models.

The electric mobility boom in the European Union has clearly stalled. In July, the number of newly registered electric vehicles fell by eleven percent across the EU compared to the same month last year. In Germany, almost 37 percent fewer electric vehicles were registered. The sector association, ACEA, recorded declining sales figures in twelve countries.

Declining market share

Overall, regardless of engine type, the number of new vehicles registered in the EU increased slightly, by 0.2%, to 852,051 vehicles, compared to the same month last year.

In this way, the market share of electric cars among new registrations has decreased: from 13.5% to 12.1%. Cars with fossil fuel engines have a slightly lower market share of 46%. Hybrid models, on the other hand, have grown significantly and now represent 32%.

Price is the deciding factor

"The growth of electromobility is taking off, and not just in Germany," says Constantin Gall, mobility expert at EY. Why? "The decisive factor currently preventing a wider spread of electric cars is their high price," says Gall.

In countries where there is a high level of financial support from the state, sales evolve favorably. Where these subsidies are absent, customers choose combustion engines - cheaper.

Nothing works without state subsidies

The best example of this is Germany, where the cancellation of the environmental premium has massively slowed down sales of electric cars. But even if we look beyond Germany, it's clear that electric cars only sell well in countries with high state subsidies.

In Denmark, the market share of electric vehicles already reaches 52%, and in Sweden, 34%. But electric vehicles are also in demand in the Benelux countries thanks to state subsidies: the market share of electric vehicles in countries such as Belgium, the Netherlands and Luxembourg is around 30%.

Electric cars - rare in Eastern Europe

In most other EU countries, however, electric vehicles remain an absolute complementary product. "In up to 15 EU countries, the market share of electric vehicles was less than ten percent in July," points out Gall, an EY expert. Germany, for example, represents only 13%.

Meanwhile, in the countries of Eastern and Southeastern Europe, electric vehicles remain a very rare sight on the road, with a small market share of 4.3%. "The market share remains homeopathic and there is little indication that this will change in the near future," says Gall.

Waiting for cheaper electric cars

The weak development of the electric car market presents major challenges for this sector. Automakers must now match their ambitious electric goals with reality and expand the coexistence of combustion engines and electric cars. According to industry experts, this is likely to cost a lot of money.

Galli hopes that the situation will improve in the medium term: "When electric cars come on the market at more affordable prices, new groups of buyers can be found"./ DW


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