Electric vehicle demand in Europe slides during August

Electric vehicles saw a sharp decline in registrations in Eurore during August, according to the European Automobile Manufacturers’ Association.

In August, registrations of battery-electric cars declined by 43.9% to 92,627 units and the total market share slipped to 14.4% from 21% a year before. The decline was driven by sharp drops in Germany (-68.8%) and France (-33.1%), which are the two largest markets in Europe. From January to August, 902,011 new battery-electric cars were registered, representing 12.6% of the market. Plug-in hybrid car registrations saw a decrease of 22.3% in August, with declines recorded in all their major markets. In August, plug-in hybrids accounted for 7.1% of the total car market, down from 7.4% last year, with 45,590 units sold. Hybrid-electric vehicles were the only vehicle type that saw growth in August, with car registrations rising by 6.6% to 201,552 units.

The European Automobile Manufacturers’ Association said the continuous trend of shrinking market share for battery electric cars in the European Union sends an “extremely worrying” signal to industry and policymakers. In response, the organization urged the European Commission to bring forward the CO2 regulation reviews for light-duty and heavy-duty vehicles, currently scheduled for 2026 and 2027 respectively, to 2025.

The BEV slump in Europe could impact Volkswagen (OTCPK:VLKAF), Stellantis (NYSE:STLA), Renault Group (OTCPK:RNSDF), Mercedes-Benz (OTCPK:MBGAF), Hyundai (OTCPK:HYMTF), Tesla (TSLA), BMW (OTCPK:BMWYY), and Volvo. Some Chinese automakers such as NIO (NIO), Zeekr (ZK), and BYD Company (OTCPK:BYDDF) are also looking to sell in Europe.