Europe car sales drop the most in 10 months as EV growth slows
Registrations dropped 5.1 per cent to 1.2 million vehicles, the European Automobile Manufacturers' Association said on Thursday (Jul 24). While demand for battery-electric cars continues to rise, sales grew at the slowest pace this year.
'Consumers clearly remain cautious, and more robust demand measures will remain a crucial element to get the transition up to speed,' the trade group known as Acea said.
Europe's carmakers can ill afford any slack in demand for electric vehicles (EVs) in their home market. Volkswagen, BMW and Mercedes-Benz Group all continue to lose ground in China, where increasingly competitive domestic manufacturers are squeezing both their volume and pricing. Other major players are dealing with tumult in top management, with Stellantis having recently named a new chief executive officer and Renault seeking a permanent CEO.
The European Commission has somewhat eased the pressure carmakers are under by granting them a three-year window to hit stricter carbon dioxide emissions targets that had been set to take effect this year.
For those manufacturers that operate in the US, however, President Donald Trump's tariffs on imported vehicles and parts have put billions of euros' worth of earnings at risk.
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The biggest source of volume decline last month was Germany, the region's largest auto market. Registrations fell 14 per cent in June and were down 4.7 per cent in the first half of the year.
Sales also slumped 17 per cent in Italy and 6.7 per cent in France last month.
Across the region, plug-in hybrids remain a bright spot. Registrations jumped 38 per cent in June as buyers increasingly opt for models that combine electric driving with a backup combustion engine.
Fully EV sales rose 14 per cent for the month, helped by new-model launches and lingering government incentives in some countries. Still, adoption rates remain uneven across Europe, reflecting patchy infrastructure and divergent national policies.
The UK last week reintroduced grants of as much as £3,750 (S$6,496) to support EV purchases, three years after the previous government ended subsidies for private buyers. New-car sales in the country rose 6.7 per cent in June. BLOOMBERG
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