European Automobile Manufacturers Association reported on Thursday thatThe number of registrations of new cars of all types increased by 3.6 percent in June to 1.31 million units – Bloomberg reported.
Electric vehicle sales in the region remained steady, despite declines in Germany and France. The weaker performance in the two largest markets on the Old Continent was offset by a more than doubling of electric car sales in Italy.
European car market rebounds in June. New car registrations rise 3.6% after May drop. / Bloomberg
The popularity of electric cars is decreasing
Across Europe, the market share of battery-powered cars has fallen slightly. The growth of the electric vehicle market in Europe has slowed due to high prices suggested by manufacturers and the abolition of subsidies by many governments.
“Losses in battery electric vehicles remain too high and investments should and are being curtailed,” Citi analyst Harald Hendrikse wrote in a note this month.
In June, the share of all-electric vehicle registrations fell to 15.9%, down from 16.5% a year ago.
Demand for electric cars strongly depends on subsidies
High borrowing costs and weak economic growth in Europe are weighing on consumer sentiment across the board. In addition, demand for electric vehicles remains highly sensitive to purchase incentives.
In Germany, Europe’s largest car market, the government abruptly ended subsidies in December, leading to a 16% drop in registrations in the first half of the year. In Sweden, which also withdrew subsidies, sales fell by a fifth.