European interest in electric vehicles seems to be dwindling, according to new data released by JATO Dynamics. Despite an increase in total car sales nearing pre-pandemic levels, the market share of electric cars in Europe actually decreased by 0.3 per cent in the first half of 2024.
The data reveals that the number of new car registrations grew by 4.4 per cent from 6.56 million units in the first half of 2023 to 6.85 million in the same period in 2024. While the number of electric vehicles sold increased by two per cent to a total of 949,981 units, the market share of electric cars dropped to 13.9 per cent.
In contrast, Chinese electric vehicles are dominating the global market, with one in five new cars worldwide being a Chinese EV. This is a stark contrast to Europe, where Chinese models only account for 17 per cent of electric cars sold and one per cent of all new registrations, excluding Tesla vehicles.
Felipe Munoz, a Global Analyst at JATO, attributes the moderate growth in the European market to a more complex operating environment, including emissions regulations, increasing vehicle prices, and barriers to the adoption of electric cars. Munoz emphasizes the importance of dispelling uncertainty surrounding the EV market in the next six months, particularly regarding EU tariffs on imported electric cars from China.
The EU recently imposed additional duty charges on electric models imported from China to counteract what they perceive as unfair subsidization by Beijing. These tariffs could have implications for the affordability of electric vehicles in Europe. While the UK government has yet to announce its policy on these tariffs, there are concerns that additional costs could be passed on to consumers post-Brexit.
As discussions between the EU and China continue, it remains to be seen how these tariffs will impact the electric vehicle market in Europe. For now, the dominance of Chinese EVs on a global scale highlights the shifting dynamics of the automotive industry and the challenges faced by European manufacturers in maintaining market share in the electric vehicle sector.