The number of new car registrations increased by just 0.4 percent in July compared to a year earlier. Last month, 1.03 million cars were registered across the EU, The European Automobile Manufacturers Association reported on Thursday. And while electric car sales rose in France and the UK, the increase was not enough to offset 37 percent drop in electric car sales in Germany.
As Bloomberg notes, electric vehicle sales have been falling for months on the European market. This is largely due to the German market, which is the largest in the region. This is partly due to The reason for the falling demand for electric cars in Germany is that governments are reducing financial incentives to buy battery-powered cars. In mid-December, Germany suddenly stopped subsidizing the sale of electric cars. The second reason is the continuing economic crisis in the country, which has had an impact on consumer spending.
New car registrations rose 0.4 percent in July / Bloomberg
EV Production Restrictions, Combustion Engines Are Coming Back into Favor
In this situation Car manufacturers are cutting back on EV production and slow down plans to phase out combustion engine cars. Bloomberg reported that Volkswagen is seeking deeper cost cuts than just the potential closure of its Audi EV factory near Brussels.
Managing Director Stellantisthe region’s second-largest carmaker, has turned its attention to the company’s unprofitable brands after the company’s net income nearly halved in the first half of the year.
Mercedes-Benz also cut its margin forecast for this year and withdrew its medium-term electric vehicle sales target, saying the transition away from combustion cars would take longer than expected.
How many cars did the main manufacturers sell in Europe in July / Bloomberg
Hybrid vehicles save the market
Electric vehicles accounted for 13.6 percent of total sales in the region last month, down from 14.5 percent a year earlier. Sales of petrol-powered cars fell by 8.4 percent, while diesel-powered vehicles fell by 11 percent. The only bright spot in this context is thesales of hybrid vehicles, of which 24 percent more were registered in July than a year ago.
