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Market Analysis

EU Electric Car Sales Decline in May Due to Slumping German Demand, Industry Reports
Amos Simanungkalit · 11.7K Views

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In May, new battery-electric car sales in the European Union declined by 12% compared to the previous year, with Germany experiencing a significant 30% drop, according to data from Europe's auto industry association released on Thursday.

 

Germany, the largest market for electric vehicles (EVs) in the bloc, ended subsidies for EV purchases prematurely in December as part of the 2024 budget negotiations. Year-to-date, Germany has seen a 16% decrease in EV sales, ACEA reported.

 

Overall new car sales within the EU fell by 3% in May compared to the same month last year, marking the second decline this year. Across the EU, Britain, and EFTA countries, sales were down by 2.6%, according to ACEA.

 

The demand for EVs in Europe has cooled recently after several years of strong growth, amidst increased competition to produce more affordable models.

 

To protect European automakers from an influx of low-cost EV imports, the European Commission announced last week it would impose provisional duties of up to 38.1% on Chinese-made EVs starting July.

 

Tesla, the U.S. electric car manufacturer (NASDAQ), indicated it would raise prices for its China-made Model 3 when these EU measures take effect, following a 34.2% decline in May sales in the EU.

 

Experts from the European campaign group Transport & Environment (T&E) suggested that while the current EV market slowdown was anticipated, sales are expected to rebound from 2025 with the introduction of new EU car emission targets.

 

In May, electrified vehicles - encompassing fully electric models, plug-in hybrids, and full hybrids - made up 48.9% of all new EU passenger car registrations, up from 46.2% a year ago. While the market share of fully electric cars decreased from 13.8% to 12.5% compared to May 2023, hybrid vehicles' share increased from 25% to 29.9%.

 

Volkswagen's total EU registrations increased by 1.6% in May, while Stellantis and Renault saw declines of 6.9% and 5.4%, respectively. Toyota's sales showed a positive trend with a 13% rise, according to the data.

 

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author.

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