European auto industry calls for urgent action as demand for EVs declines
The European auto industry supports the Paris Agreement and the EU’s 2050 transport decarbonisation targets and has invested billions in electrification to bring vehicles to market. Today, vehicle technology and the availability of zero-emission vehicles are not bottlenecks, the ACEA said in a statement.
We are playing our part in this transition, but unfortunately, the other necessary elements for this systemic shift are not in place. An aggravating factor is the rapid erosion of the EU’s competitiveness, as confirmed in the Draghi report.
The latest EU car registration data released by ACEA on Wednesday once again confirms the electric car market is now on a continual downward trajectory, they added.
In August 2024, new EU car registrations saw a sharp decrease (-18.3%) with negative results across the region’s four major markets: double-digit losses were witnessed in Germany (-27.8%), France (-24.3%), and Italy (-13.4%), with the Spanish market declining by 6.5%.
In August 2024, registrations of battery-electric (BEV) cars dropped by 43.9% yr/yr, with their total market share slipping to 14.4% from 21% a year before.
Plug-in hybrid (PHEV) car registrations saw a -22.3% decrease, accounting for 7.1% of the total car market, down from 7.4% last year.
Hybrid-electric vehicles (HEVs) are the only vehicle type that saw growth in August, with car registrations rising by 6.6%, and their market share up at 31.3% from 24%.
As stated by the ACEA Board:
We are missing crucial conditions to reach the necessary boost in production and adoption of zero-emission vehicles:
- charging and hydrogen refilling infrastructure, as well as
- a competitive manufacturing environment,
- affordable green energy,
- purchase and tax incentives, and
- a secure supply of raw materials, hydrogen and batteries.
Economic growth, consumer acceptance, and trust in infrastructure have not developed sufficiently either, they ACEA added.
"As a result, the zero-emission transition is highly challenging, with concerns about meeting the 2025 CO2 emission reduction targets for cars and vans on the rise. The current rules do not account for the profound shift in the geopolitical and economic climate over the past years and the law’s inherent inability to adjust for real-world developments further erodes the competitiveness of the sector."
This raises the daunting prospect of either multi-billion-euro fines, which could otherwise be invested in the zero-emission transition, or unnecessary production cuts, job losses, and a weakened European supply and value chain at a time when we face fierce competition from other automaking regions.
"The industry cannot afford to wait for the review of the CO2 regulations in 2026 and 2027, we need urgent and meaningful action now to reverse the downward trend, restore EU industry competitiveness and reduce strategic vulnerabilities," the ACEA stressed.
"For heavy-duty vehicles, an earlier review will also be absolutely critical to ensure vital conditions like infrastructure for trucks and buses are scaled up in time.
"We stand ready to discuss a package of short-term relief for the 2025 CO2 targets for cars and vans, as well as a fast-track, comprehensive, and robust review of the CO2 Regulations for both cars and trucks, plus targeted secondary legislation, to get the zero-emission transition firmly on track and secure Europe’s industrial future," the ACEA concluded.
Cover photo: witthaya prasongsin via Getty Images
