Is Europe’s automotive power slowly coming to an end? Car sales are plummeting and companies are facing fines

Luc Williams

New car registrations in September, they fell year-on-year by 4.2%, reaching 1.12 million units, the European Automobile Manufacturers Association reported on Tuesday. Sales increases in the electric car sector failed to offset declines in sales of combustion engine vehicles.

Sales declines

European manufacturers have tried to increase car sales in their home markets, but they have a problem with this due to… deteriorating economic situation and higher interest rates.

Stellantisowner of brands such as Fiat Whether Peugeot, recorded one of the largest declines – the decline in registration of new cars of these brands was as much as 26%.

The statistics for individual countries are slightly different. While increases were recorded in Great Britain and Spain, declines in total car sales could be observed in Germany, Italy and France.

A slightly better result for electric cars

Interestingly, sales of electric cars increased on a monthly basis in September, which the entire industry had been waiting for after the demand for electric cars had been falling for many months after last year’s withdrawal of government subsidies.

Electric car deliveries have jumped 24% in the UK, where manufacturers are cutting prices significantly as they try to meet government guidelines for zero-emission cars. In Germany, where new incentives for the purchase of electric cars are being discussed, sales of this type of cars increased by 8.7%. on a monthly basis.

The situation looks worse when a different time perspective is used. In the period from the beginning of the year to September, sales of electric cars on the Old Continent dropped by 2.6%. Prospects in this area further complicate rollout plans 45 percent tariffs on electric cars imported from China. The European Union and China are to discuss introducing alternative solutions that would avoid imposing customs duties. German Chancellor Olaf Scholz on Monday, he once again stressed that he was against imposing tariffs.

Cheaper models

European consumers oppose the high costs of owning an electric car. For this reason, manufacturers are trying to increase sales by releasing cheaper models. Last week Renault zpresented fashionl R5, which costs 25 thousand euro. Another European giant – Stellantis – he started delivering Citroën ë-C3 and offers it for PLN 23.3 thousand. euro.

Risk of penalties

The largest car manufacturer on the Old Continent – German Volkswagen – is considering the unprecedented step of closing some production plants in the face of falling demand. His sports arm – Porsche, and also the main domestic rival – Mercedes Benz – they adjusted their production ambitions when it comes to electric cars to lower demand.

The declining sales of electric cars across Europe poses a risk to manufacturers such as: Volkswagen, Stellantis or Renault, that they will have to pay fines related to CO2 emissions. If producers do not comply with European requirements, they may pay fines of up to EUR 15 billion.

About LUC WILLIAMS

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.