vehicle sales in Europe fell by 44% amid a market slowdown, prompting ACEA to call for urgent action to boost adoption
New car sales across the European Union have dropped to their lowest levels in three years, with an 18.3% decline in August 2024. This sharp fall is largely attributed to significant losses in key markets such as Germany, France, and Italy. Data released by the European Automobile Manufacturers’ Association (ACEA) highlights growing concerns for the electric vehicle (EV) sector, which saw a staggering 43.9% reduction in sales during the same month.
In August, only 92,627 battery-electric vehicles (BEVs) were sold across the EU, a sharp decline compared to the 165,204 units sold during the same period in 2023. This represents the fourth consecutive month of falling EV sales, causing the market share of BEVs to shrink from 21% in 2023 to 14.4% in 2024. The downturn has been particularly severe in Germany, where sales plunged by an alarming 68.8%, followed by France, which experienced a 33.1% drop.
Plug-in hybrid electric vehicles (PHEVs) also faced difficulties, with sales falling by 22.3%. This segment now accounts for only 7.1% of the total market, compared to 7.4% last year. In contrast, hybrid-electric vehicles (HEVs) were the only category to experience growth, with a 6.6% increase in sales. Notable growth was observed in Spain (+12.6%), France (+12.5%), and Italy (+2.5%).
The ACEA has raised concerns about the ongoing decline in EV sales and has called for immediate measures to address the issue. They warned that if urgent actions are not taken by EU institutions, the new CO2 emission targets set to be enforced in 2025 could exacerbate the challenges faced by the auto industry. These stricter emission regulations could impose additional burdens on automakers already grappling with declining sales and the shift towards electrification.
Despite the current setbacks, automakers remain committed to the transition towards greener, zero-emission vehicles. Significant investments continue to be made in electric vehicle technology and related infrastructure. The ACEA emphasized that without proper support from policymakers, the automotive industry’s efforts to meet environmental goals could be hindered. They also urged EU lawmakers to accelerate the review of CO2 regulations for light-duty and heavy-duty vehicles, which are currently scheduled for 2026 and 2027. By bringing forward the review, the ACEA hopes to stabilize the market before the new emission standards take effect.
The ongoing struggles in the EV market come at a critical time for the automotive industry, which is in the midst of a major transformation towards sustainable transportation. The push for electrification is being driven by both environmental concerns and regulatory pressures. However, the recent decline in sales highlights the need for continued and immediate support from both industry stakeholders and policymakers to ensure a smooth and successful transition.
The ACEA has been vocal in its appeal for targeted interventions that would help stimulate demand for electric vehicles. These measures could include financial incentives for consumers, increased investment in charging infrastructure, and streamlined regulatory frameworks to support the production and sale of electric cars. Without these actions, the industry risks further declines, which could slow the broader effort to reduce carbon emissions across Europe.
In summary, the decline in car sales, particularly in the electric vehicle sector, underscores the challenges facing the European auto industry as it navigates the transition to greener energy. With sales at a three-year low and the looming introduction of stricter CO2 regulations, automakers and policymakers alike must act quickly to reverse the trend and ensure that the shift towards electric mobility continues on track. The ACEA’s calls for urgent relief measures and a faster review of emission standards are crucial steps in stabilizing the market and safeguarding the future of Europe’s automotive industry.
