aIn recent years, affordable new electric family cars have become scarce in Europe, particularly those manufactured in the EU. Campaign group Transport and Environment reports that no electric models produced domestically and priced below €25,000 (£20,740) will be available for sale across the EU in 2022-23.
However, the landscape has shifted in recent months with the introduction of new cars like the Fiat Grande Panda, Citroën ë-C3, Hyundai Instar, Dacia Spring, and Renault 5. This sudden influx has provided buyers with more options.
This change is not coincidental. As stricter EU carbon emissions targets take effect on January 1, car manufacturers are facing the need to sell more electric vehicles to avoid fines. The industry is pushing for relaxed rules, while environmentalists are advocating for a firm stance from the EU.
Globally, automakers are grappling with weak demand for both battery-powered and internal combustion engine models. This profit decline occurs at a challenging time as the industry seeks funding for the costly shift to electric vehicles (EVs).
While 2024 saw record-breaking electric vehicle sales worldwide, driven by China’s growing industry, European markets are experiencing a slowdown. Analyst Matthias Schmidt predicts a 1.4% sales decrease in the 18 largest Western and Northern European markets over the past year.
The decline can be attributed to the cessation of generous subsidies for new EVs in Germany, the largest EV market in Europe. The end of a €5,000 incentive per car has posed challenges, impacting EV sales not only in Germany but also in other countries like France.
Some automakers are faring better than others in meeting emissions targets. While Ford struggles with Cologne-made electric car sales, BMW, Stellantis, Tesla, Polestar, and Volvo are ahead of their targets, allowing them to sell “credits” to competitors.
The sales dip has put political leaders on alert, as automakers blame regulations for potential factory closures. Volkswagen announced plans to close up to three factories in Germany, while Ford is cutting jobs in Europe. This has led industry associations to lobby for relaxed emissions standards to protect jobs.
In the UK, manufacturers have successfully argued against fines, leading to calls for a unified approach. The European Automobile Manufacturers Association is urging the European Commission to provide clarity on emissions standards to safeguard jobs.
European policymakers may consider easing emissions regulations, with discussions set to begin in January. Efforts to relax rules are being led by some EU governments.
However, concerns persist about the long-term impact of deregulation. Analysts and activists warn that relaxing targets could jeopardize European industry, allowing Chinese EV startups to gain ground in the market.
Source: www.theguardian.com
