New car sales in Europe fell in December for the first time in 17 months. And there is a reason.
According to data published by ACEA for the past month, new vehicle registrations appear reduced by 3.8%reaching an absolute number of 1.05 million units, in the EU, UK, Norway, Liechtenstein, Switzerland and Iceland markets.
According to the European Automobile Manufacturers Association, this result bodes well for the year that has just begun decrease in market growth rate as a result of it corresponding reduction in demand for electric vehicles.
More specifically, new vehicle sales fell by almost a quarter in Europe’s largest market (none other than Germany) after the removal of incentives for electric vehicles, outpacing the growth recorded in other key countries of the old continent.
Also read: Abrupt end to electric vehicle subsidies
Increased borrowing costs, subdued economic indicators in a few European countries and growing pessimism around EVs cloud the industry’s outlookauthoritative analysts typically report.
Bloomberg Intelligence, for example, predicts that sales growth for 2024 will slow to 5%against 14% which was in 2023.
“Demand is starting to weaken”, its analysts led by Daniel Roeska said. The agencies but also the manufacturers themselves “will soon face the consequences of sluggish demand”.
The decline in sales in Germany, where the registrations of electric vehicles almost halved last month, offset growth in markets such as the UK, Spain and France.
In Italy also, where classifications rose 6% in December, the government is considering a €930 million package to boost EV sales.
EV sales in Europe increased by 28% last year, but decreased by 25%, at 205,980 units, him Decemberamid falling registrations for battery electric vehicles in Sweden, the Netherlands and Croatia.