Electric car sales slow in Europe
2024-08-20
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Reference News reported on August 19According to a report on the Spanish newspaper El País website on August 14, European automakers have invested billions of euros to change the entire European automobile production chain, but the sales of electric vehicles of various brands have not improved. The automobile industry in the Old Continent is frustrated that its market performance has not taken off. The market in some countries has even shrunk. According to data from the German Automobile Manufacturers Association, Germany, which has the largest share of the European automobile market (electric vehicle purchase subsidies will be cancelled at the end of 2023), saw electric vehicle sales fall 37% year-on-year in July, and sales so far this year have fallen 20% year-on-year. Pure electric vehicles currently account for 12.6% of the German automobile market. The European Automobile Manufacturers Association estimates that as of June this year, the market share of electric vehicles in the entire European Union has fallen by one percentage point year-on-year.
The situation is jeopardizing billions of euros in investments across the industry, such as those made by Volkswagen Group in Spain, where a large proportion of the cars it produces are exported to Germany. In Spain, Volkswagen is working with its industrial partners to raise around 10 billion euros to electrify its cars in Spain and build a battery factory in Sagunto, Valencia.
"I am worried every day when I go to the plant in Martorell, where we have invested 300 million euros in a battery assembly plant that will be operational next year. But I see that electric vehicles currently only account for about 5% of the market share in Spain. Fortunately, we still have a fuel vehicle product line, which we also need to continue investing in. We must invest in today's world and the world of the future," said Wayne Griffiths, CEO of SEAT and Cupra brands, at a conference organized by Spain's El País in April this year.
In contrast, sales of traditional hybrids and mild hybrids (which do not run on electricity but are equipped with an additional small power battery) have grown rapidly, with new registrations in July even exceeding those of gasoline cars. In view of this situation, the Stellantis Group announced that it will launch 30 mild hybrid models in Europe this year and another 6 by 2026.
One of the most striking examples of how badly electric cars are having a bad time in the Old Continent is the statement made by Audi last month, in which it said it "intends to restructure its production center in Brussels." Audi builds the electric models Q8 e-tron and Q8 Sportback e-tron there. If Audi cannot find a viable solution, this restructuring could mean closing the plant, which employs around 3,000 people.
Another German automaker, Mercedes-Benz, has announced that its original goal of achieving 50% of its sales from electric vehicles, including hybrids, by 2025 has been revised, saying the goal will not be achieved until 2030. Its global CEO Ola Källenius said in February that the company will continue to work on improving fuel engines.
In June, ACC, a battery maker backed by Mercedes-Benz and Stellantis Group, halted work on two battery factories in Italy and Germany. “We will adjust our electric vehicle investment plans based on the growth rate of electric vehicle sales in the market,” said Carlos Tavares, CEO of Stellantis Group.
Meanwhile, Ford, the US automaker with a plant in Valencia, is also clearly retreating. The company has abandoned plans to set up an electric vehicle production platform at its Spanish plant and instead allocated a production plan for a new model to the Valencia plant, which will have a hybrid version. Ford promises that the model will become a best-seller with an annual production of 300,000 units. However, the model will not be available until 2027. Until then, the plant will remain in a "new model blank state." "We believe that full electrification by 2030 is not a good option for our business, let alone our customers," Marin Jaya, CEO of Ford's electric vehicle division, said in an interview with the British magazine Automobile last month. (Translation/Tian Ce)
On December 14, 2022, the Audi Q8 Sportback e-tron model began production at Audi's plant in Brussels. (AFP file photo)
