Drop in Electric Vehicle Registrations in Europe: Anticipated Views from Electromobility Professionals Regarding Future Trends

In August 2024, the European electric vehicle (EV) market experienced a substantial decline, with registrations dropping by 33% compared to the same month in the previous year. This marks the lowest level since January 2023.

The decline was particularly noticeable in Germany, where new passenger car registrations decreased by 27.8%, with battery electric vehicles (BEVs) experiencing the steepest decline ever recorded for this month. The person concerned about this trend is mobility expert Constantin Gall from the consulting firm EY, who attributes this to high sales being mainly driven by tax benefits for company cars and high manufacturer discounts, rather than a real electric vehicle boom.

Andre Schmidt, President of VDIK, also noted that the decline in BEV registrations in Germany was not entirely unexpected, following the elimination of the purchase premium for commercial customers in September 2023.

In Italy, only 2,410 fully electric cars were registered in August, marking a 40.6% decline compared to the same month in 2023, bringing the market share down to 3.5%. Fabio Pressi, President of Motus-E, commented on the confusing market trend, attributing it to the evolving electric vehicle landscape and motorists' uncertainty.

Pressi also emphasized the importance of enhancing public charging infrastructure, expanding private charging at home and work, and revising company car taxation to stabilize the growth of electric mobility in Italy.

Switzerland saw a decrease in EV registrations with only 3,421 units registered compared to 4,289 in August 2023, marking a decline of 20.2%. The promotion of electromobility in Switzerland is largely the responsibility of the cantons, which are implementing tax reductions and incentives for charging point installations. However, Chris Heron, General Secretary of AVERE, noted that the reintroduction of a four per cent federal import tax in Switzerland has dampened market enthusiasm.

National policy in Switzerland lacks the motivation to adequately support the industry, both financially and through a more favorable legal framework. Despite these challenges, the arrival of new models with competitive prices and the expansion of the MOVES programme could be the boost needed to reignite demand in Spain.

In France, August 2024 saw a 32.5% drop in electric and plug-in hybrid vehicle registrations compared to the previous year. Sveinung Kvalø, senior advisor at the Norwegian Electric Vehicle Association, suggested that the industry's portrayal of stagnating sales could be influenced by a desire to push back against tighter EU emission regulations set to take effect in 2025.

Despite the recent decline, AVERE remains committed to its mission of keeping Europe on track towards its goal of zero-emission vehicle sales by 2035. Kvalø concluded that the European car industry must invest in zero-emission vehicles rather than fight to preserve fossil-fuel cars, as electrification is the future.

As of August 30, the Italian electric vehicle fleet consisted of 256,493 cars. Despite the recent decline, the industry is expected to continue its growth trajectory as more affordable and technologically advanced EVs become available and as governments implement policies to support the transition to electric mobility.

Drop in Electric Vehicle Registrations in Europe: Anticipated Views from Electromobility Professionals Regarding Future Trends