Battery-electric vehicle (BEV) registrations dropped by 16.9% to 160,700 units in December 2023, which was a big drop in sales of electric vehicles in the European Union.
This drop was mostly because of a big drop in sales of electric cars in Germany. This was the major reason why EU sales went down for the first time in 16 months.
Factors Contributing to the Decline
Several factors contributed to the decline in electric vehicle sales in the EU:
- End of subsidies in Germany: The abolition of subsidies in Germany led to a steep drop in electric sales in the country, which is the largest market for all-electric sales.
- High price of electric cars: The average price of electric cars in the EU is around €52,000 ($57,000), which is higher than the price of combustion vehicles.
- Lack of cheap models: The high price of electric cars and the lack of affordable options compared to combustion vehicles have been cited as factors contributing to the decline in sales.
- Strong baseline comparator in December 2022: The decrease in electric vehicle sales in the EU was also due to a strong baseline comparator in December 2022.
Implications for the Future
Germany’s sales of electric cars went down because incentives were taken away and the cars were too expensive. The drop in sales of electric cars in the EU was also caused by a good baseline in December 2022.
People say that the drop in sales is due to the high cost of electric cars and the lack of affordable choices compared to gas-powered cars.
Even though sales are going down, experts think that for a short time in 2024, sales of electric vehicles in Western Europe will stop growing. They expect sales to reach 1,935,000, up from 1,899,700 in 2023, for a 16.4% market share.
The EU wants to get rid of the competition for internal combustion engines, which will lead to a total ban on ICEs by 2035.
In conclusion, the main reason why sales of electric vehicles in the EU went down for the first time in 16 months in December 2023 was a big drop in sales in Germany.
The drop was caused by a number of things, such as the end of subsidies in Germany, the high cost of electric cars, and the lack of choices that were cheaper than gas-powered cars.
In spite of the drop, experts think that sales of electric vehicles in Western Europe will stop growing for a short time in 2024 before starting to rise again.