Electric car sales continue to fall in Europe. In May, a significant drop of 12% was recorded in the European Union, with only 114,308 new registrations, according to the latest statistics from the European Manufacturers Association (ACEA). This downward trend is particularly marked in countries like Sweden (-35%), Germany (-30%), and Italy (-18%). On the other hand, hybrid car sales increased by 16% over the same period.
Electric cars still too expensive
Over the first five months of the year, electric cars represent 13.5% of sales in Europe, including the United Kingdom and Norway, compared to 13.7% a year earlier. The end of subsidies in Germany at the end of 2023 particularly impacted sales, with a notable drop in May. Even Norway, often cited as the model for electrification, saw its sales fall by 27%.
France, however, is an exception thanks to generous government aid. Sales there increased by 5.4% in Maysupported by subsidies of up to 7,000 euros per zero-emission vehicle, depending on income.
The high cost of electric cars remains a major obstacle to their adoption. An electric Peugeot 208 costs around 33,000 euros, compared to 18,770 euros for its gasoline version. This price difference makes sales of electric cars highly dependent on public aid. In France, these subsidies have made it possible to maintain a certain dynamism on the market, but their sustainability is uncertain.
The challenges of mass adoption
Europe has marked disparities in terms of electrification. Norway, a leader in this field, has an electrification rate of 90%, while countries like Spain (4.4%), Italy (3.2%) and the Czech Republic (0.2%) remain far behind. This situation raises questions about the nature of this stagnation: is it structural or cyclical? Electrification remains inevitable, despite the higher cost of electric cars, offset by lower usage costs.
Brussels’ decision toban sales of new non-electric cars by 2035 puts pressure on manufacturers. Citroën, for example, must sell 25% of its vehicles in electric version from 2025 to avoid heavy fines linked to CO2 emissions. Despite this, European motorists seem reluctant. Manufacturers admit that the electric market is lagging behind forecasts.
The arrival of more affordable models, such as the Citroën ë-C3 or the future Renault R5, could change the situation. However, these vehicles, although less expensive, remain more expensive than their thermal equivalents and offer lower performance, particularly in terms of autonomy, a crucial criterion for consumers. A McKinsey study also reveals that 30% of electric car owners plan to return to thermal vehicles, mainly due to charging problems.
The difficulties of the electricity market are also reflected in the strategic decisions of companies. Renault had to postpone the IPO of its subsidiary Ampere due to lack of sufficient interest from investors. Likewise, the battery manufacturer ACC, supported by Stellantis and Total Energies, announced a pause in the construction of gigafactories in Germany and Italy due to uncertainties over electricity.
