BEV Sales Decline in Europe Amid Infrastructure Challenges

battery electric vehicles (BEVs)

Sales of battery electric vehicles (BEVs) in Europe continued to slide in August, marking a 36% year-on-year decrease to 125,833 units, according to the European Automobile Manufacturers Association (Acea). BEVs accounted for 14.4% of the EU car market, a steep drop from the 21% share held a year earlier. This represents the fourth consecutive month of shrinking market share, following consistent growth in 2022.

Acea attributed the decline to Europe’s lack of "crucial conditions" necessary for growing its BEV market. Insufficient charging infrastructure, a less competitive manufacturing landscape, uncertain raw material supply chains, and weak consumer purchase incentives were all cited as barriers. "As a result, the zero-emission transition is highly challenging," the association stated, expressing concerns about the ability to meet the 2025 CO2 reduction targets for cars and vans. Acea signaled its readiness to discuss short-term measures to safeguard the future of Europe's industrial and automotive sectors.

Policy Divides on BEV Transition

The EU’s goal of phasing out new fossil fuel-powered cars by 2035 has sparked debate. Italian Prime Minister Giorgia Meloni has called the plan "self-destructive," while major car-producing nations like Germany and the Czech Republic have called for looser regulations. Earlier this month, Germany's coalition government endorsed a tax relief proposal aimed at boosting EV adoption, after discontinuing a subsidy program in 2022.

Despite the broader downturn in BEV sales, Swedish carmaker Volvo stood out with a 28.6% increase in overall car sales in August, selling 16,113 units. The company’s EX30 BEV model ranked as the third best-selling BEV in Europe for the first half of 2023. However, Volvo’s ties to Chinese carmaker Geely have prompted renewed scrutiny of the growing presence of Chinese EV makers in the European market.

In total, the European car market experienced a 16.5% contraction in August, driven by supply chain challenges and a weakened economic outlook. Major markets, including Germany, France, and Italy, saw significant double-digit declines, while the UK posted a modest 1.3% decrease in sales.