As of October 2023, the market share of electric vehicles in the European Union was 14.2%. In particular, the number of registrations increased by 36.3% compared to 2022 (121,808 units). However, in recent months demand for BEV models has fallen and several car manufacturers have emphasized this aspect. In this regard, one cannot fail to mention Volkswagen, which had to reconsider its goals and reduce production.
Falling demand for electricity should not affect investment by European automakersunlike what happens in the US. At least that’s what Automotive News Europe reports, citing some analyst reports from companies such as Fitch and UBS.
Analysts explain that the decline in demand for electric vehicles was due to a variety of factors, including high interest rates and economic problems. Because of these problems, automakers and analysts expect weaker and short-term growth in electric vehicle sales in Europe. However, this scenario should not harm European manufacturers’ investments in the electric vehicle sector.
According to UBS analysts, EV growth in Europe will slow by 15% in 2024 compared to 2023 levels. This is a completely different figure than expected. However, this trend is already evident today, given the alarm raised by some automakers. For example, in October, Volkswagen Group CFO Arno Antlitz said the group’s orders for electric vehicles in Europe had dropped significantly.
In the United States, demand for cooling electric vehicles has forced General Motors and Ford to reconsider their plans. However, Fitch does not expect European investment to follow the same pattern.
There is still a lot of investment in electric vehicles in Europe and this remains the ultimate goal for manufacturers even if we see a slowdown in demand.
A positive signal comes from Renault resulting in the creation of Ampere, a division dedicated exclusively to electric vehicles. Additionally, investment in battery plants and electric vehicles continues to rise as automakers anticipate long-term growth in the sector, driven in part by legislation.
As we know, European rules provide for this. stop selling new endothermic cars from 2035 (an exception remains only for cars running on synthetic fuel). Subsequently, all new cars sold will be required to be zero-emission. Investment in electric vehicles in Europe is also being stimulated. benefits offered under the European Green Deal. Consider, for example, the €659 million allocated to the French company Verkor for its battery plant in Dunkirk, France.
Automakers expect the EU to strengthen the Green Deal to better compete with the Inflation Reduction Act (IRA) stimulus package. Essentially, it is believed that the end of sales of new endothermic cars and incentives promised by the European Union will encourage car manufacturers to continue investing in electric vehicles in Europe.
Source: HD Motori
Ashley Fitzgerald is an accomplished journalist in the field of technology. She currently works as a writer at 24 news breaker. With a deep understanding of the latest technology developments, Ashley’s writing provides readers with insightful analysis and unique perspectives on the industry.