The European automotive industry experienced a significant downturn in August 2024, with electric vehicle (EV) sales plummeting 43.9% across the continent. This decline was part of a broader 18.3% drop in overall new car sales in the European Union, according to data from the European Automobile Manufacturers’ Association (ACEA).
Major European car markets were hit particularly hard. Germany, a key player in the automotive sector, saw EV sales plunge by 68.8%, while France reported a 33.1% decrease. The trend extended to plug-in electric cars, which experienced a 22.3% decline across all 27 EU member states.
In contrast, hybrid electric vehicles showed resilience, with sales increasing by 6.6% in August. ACEA data indicates that hybrids now command a 31.3% market share in Europe. Reuters reports that these vehicles are gaining popularity as a middle ground between traditional internal combustion engine (ICE) cars and fully electric models, offering a balance of cleaner technology and affordability.
The EV market’s struggles come at a critical time for EU policy. A vote on the European Commission’s proposed tariffs on Chinese-made electric vehicles was initially scheduled for September 25, 2024. This decision would determine whether new tariffs would be implemented over the next five years. However, Politico reports that the vote may be postponed, citing three EU diplomats who claim it has been removed from the agenda of the bloc’s Trade Defense Instruments Committee meeting.
This situation highlights the complex challenges facing the European automotive industry as it navigates the transition to electric mobility amidst economic pressures and international trade considerations.
