Battery-powered car registrations fall in Europe’s largest car market to 30,762 vehicles, which is compared to the previous year means a decrease of 37 percent.reported the German Federal Road Transport Authority KBA.
This is the biggest drop since December, when the German government suddenly withdrew subsidies for electric vehicles.. Meanwhile, sales of non-electric vehicles rose by 7 percent.
The difficult situation of electric car manufacturers
The broad slowdown in the EV sector in Europe is putting carmakers like Volkswagen in a difficult position with regard to their production plans.
The pool of affluent and environmentally conscious buyers is drying up. Meanwhile, after the decision to withdraw government subsidies, the market lacks affordable battery models, which excludes mass but less affluent consumers.
The share of electric car sales in Germany fell to just under 13 percent in July. from 20 percent a year earlier, according to Ernst & Young. Meanwhile, automakers expected rapid growth in the number of battery-powered vehicles.
German electric car sales plunge 37% in July, with battery-powered car registrations falling after incentives withdrawn last year / Bloomberg
Global decline in demand for electric cars
Registrations of new electric cars in Sweden, the leader in electromobility in the EU, also fell in Julydeepening the decline observed since the beginning of the year. According to Mobility Sweden, the number of registrations of new electric cars fell by 15 percent in July compared to last year. Sales of electric cars in Switzerland fell by 19 percent.
The slowdown is putting the auto industry, which has invested billions in EV technology, at risk. VWEurope’s largest car manufacturer, announced last week that reduced production capacity at plants in Germany, and may also change the start date of battery production.
The decline in demand for electric vehicles has also worsened sentiment regarding the business prospects of other German car manufacturers, including Mercedes-Benz and BMW.
