European new car sales in August 2024 drop to lowest point in three years – EV registrations down by 44%

New car sales in Europe fell by 18.3% in August to its lowest point in three years, brought about by double-digit losses in major markets such as Germany, France and Italy as well as from dropping electric vehicle (EV) sales, Reuters reports.

According to auto industry body data released earlier this week, last month was the fourth consecutive monthly drop in EV sales, prompting the European Automobile Manufacturers’ Association (ACEA) to ask “EU institutions to come forward with urgent relief measures before new CO2 targets for cars and vans come into effect in 2025.”

The association said that sales of full EVs fell by 43.9% in August, with the continent’s biggest EV markets, Germany and France, recording drops of 68.8% and 33.1% respectively, but it wasn’t just with full electrics, as sales of plug-in hybrids also slumped by 22.3% last month.

In the first eight months of 2024, new BEV registrations accounted for 12.6% of the total volume in Europe, down by 1.4% from the 13.9% from the same period last year. Sales of petrol and diesel vehicles also contracted during the January-August period. but hybrids have gained traction in the overall table, with buyers viewing them as an affordable compromise between ICE and fully-electric paths.

Europe’s three largest carmakers, Volkswagen, Stellantis and Renault fell by 14.8%, 29.5% and 13.9% respectively. Even Tesla was not immune, with the EV maker recording a 43.2% drop last month. In general, sales in the continent are below pre-Covid-19 levels and Volkswagen said that this trend could continue for the foreseeable future.

The slowdown in EV registrations is partly due to diverging policies on green incentives across the union, with regulators having imposed hefty tariffs to try to keep out cheap Chinese EVs, potentially adding to purchase prices. In a bid to revive the market, Germany agreed earlier this month to offer tax deductions of up to 40% for companies on their EV sales.

It’s not all gloom, because campaign group Transport & Environment believes that the market will recover, predicting battery electric cars will reach a total market share of between 20% and 24% by 2025 in the EU, mostly because of lower selling prices.

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