Car sales convention in Europe. There is one main reason

Luc Williams

The European Automobile Manufacturers Association said on Thursday that new car registrations fell to 1.09 million units last month. Sales of electric vehicles fell by 11%. due to declines in several major markets. The share of electric cars in total sales also decreased.

High borrowing costs and weak economic growth across Europe are weighing on consumer sentiment. Automakers are grappling with slow sales of electric vehicles because drivers are discouraged by high prices and poor charging infrastructure. And action this month by the European Union to impose additional tariffs on Chinese electric vehicles could make imported alternatives more expensive.

The number of new car registrations fell by 2.6% in May. / Bloomberg

Electric cars are still too expensive

High prices have become a major obstacle to the development of electric vehicles in Europe after, among others, Germany and Sweden have stopped or reduced subsidies. Volkswagen, Stellantis and Renault are preparing cheaper models, costing around PLN 25,000. euro, but their production will start only next year.

The share of electric vehicle sales in the region fell in May by one percentage point, to 14 percent. total sales, amid double-digit declines in markets including Germany, Sweden and Norway. Sales of plug-in hybrids fell by 9.6%.

Changing the electric vehicle strategy

Some automakers have begun to adjust their EV goals, and Stellantis NV i Mercedes-Benz has suspended work on two electric car battery factories in Germany and Italy. VW admitted last month it would need more plug-in hybrids, while Mercedes plans to sell combustion engine cars for longer than expected.

Volkswagen and Toyota were among the few mass-market carmakers that managed to increase sales in May, growing by 1.8% and 1.8% respectively. and 8.2 percent

Tesla car registrations in the region fell by 36% last month, a sharp decline that marks a continuation of the electric vehicle maker’s weak performance in the second quarter. After the first five months of the year, the company’s sales dropped by approximately 14 percent.

Car sales data in Europe. How the largest car manufacturers fared in May / Bloomberg


Luc's expertise lies in assisting students from a myriad of disciplines to refine and enhance their thesis work with clarity and impact. His methodical approach and the knack for simplifying complex information make him an invaluable ally for any thesis writer.