New car sales in the European Union fell 18.3% in August to their lowest in three years, dragged by double-digit losses in major markets Germany, France and Italy, data from Europe's auto industry body showed on Thursday.
Sales of fully electric cars slumped 43.9% in August, falling for the fourth consecutive month, as the bloc's biggest EV markets Germany and France recorded drops of 68.8% and 33.1% respectively, the European Automobile Manufacturers Association (ACEA) said.
WHY IT'S IMPORTANT
Car sales in Europe have dropped well below pre-COVID-19 levels, with carmakers such as Volkswagen (VOWG_p.DE), warning that the trend might not change in the foreseeable future.
EV sales growth has also slowed, in part due to diverging policies on green incentives, while regulators have imposed hefty tariffs to try to keep out cheap Chinese EVs.
BY THE NUMBERS
Sales of battery electric and plug-in cars fell by 43.9% and 22.3% respectively in August, while those of hybrid-electric cars rose 6.6% to a market share of 31.3%.
Registrations at Europe's three largest carmakers Volkswagen, Stellantis (STLAM.MI) and Renault (RENA.PA) all fell from a year earlier, by 14.8%, 29.5% and 13.9%, respectively.
Sales at EV maker Tesla (TSLA.O) dropped 43.2%, and those for China's SAIC Motor (600104.SS) were down 27.5%.
CONTEXT
The market share of hybrid electric cars has increased in the EU in recent months, as buyers see them as an affordable compromise between all-combustion and all-electric.
To inject new stimulus into the EV market, Germany agreed in September on tax deductions of up to 40% for companies on their sales of electric cars, after last year ending a subsidy programme designed to help speed up the green transition.
Campaign group Transport & Environment said earlier this week however that battery-electric cars sold in the bloc are set to reach a total market share of between 20% and 24% by 2025, mostly because of lower selling prices.
