EU New Car Sales Plummet

The European Union’s market for new cars witnessed its most significant drop in more than two years this August, according to recent data from the European Automobile Manufacturers’ Association (ACEA). This substantial decline aligns with the European Commission’s implementation of provisional tariffs on battery-electric vehicles (BEVs) produced in China and imported into the EU.

Following an anti-subsidy investigation, the European Commission concluded that China’s BEV value chain benefits from

“unfair subsidisation,”

leading to

“a threat of economic injury”

for EU-based BEV manufacturers. As a consequence, automakers importing these vehicles from China now face levies ranging from 17.4% to 37.6%, determined by the extent of subsidies and their level of cooperation with the investigation.

In August, new car registrations across the EU fell by 18.3% year-on-year. The bloc’s three largest automotive markets suffered double-digit losses: Germany experienced a 27.8% decrease, France saw a 24.3% drop, and Italy reported a 13.4% decline, based on ACEA’s latest figures. Spain, the EU’s fourth-largest car market, also recorded a 6.5% reduction in new registrations.

Amid widespread decreases, only four EU member states—Poland, Slovenia, Cyprus, and Malta—reported slight growth in new car registrations during the same period. Petrol-fueled vehicles comprised the majority of new cars delivered across the bloc, accounting for 33.1% of the market share, with hybrid-electric vehicles (HEVs) closely following at 31.3%.

The proportion of new BEVs in the EU car market dropped to 14.4% from 21% in August 2023. Deliveries of BEVs have been declining for four consecutive months this year, a stark contrast to the consistent growth observed throughout 2023, as noted by ACEA.

ACEA, which represents Europe’s 15 major manufacturers of cars, trucks, vans, and buses, highlights these trends as indicative of the current challenges facing the EU automotive industry. The combination of market dynamics and international trade policies appears to be influencing consumer preferences and industry performance.

Consumers and industry watchers may wonder what this means for the future of electric vehicles in Europe. The decline in BEV deliveries suggests that tariffs and trade tensions could be affecting the affordability and availability of electric cars, potentially slowing the EU’s transition to greener transportation options.