New car sales in the European Union rose by 4.3% in June, reaching their highest level since July 2019. This increase was driven by strong performances in major markets like Italy, Germany, and Spain. However, while overall sales surged, the growth of battery electric vehicles (BEVs) stalled.
Despite a rise in BEV registrations in Belgium and Italy, double-digit declines in Germany, the Netherlands, and France resulted in a marginal decrease in BEV sales across the EU. This trend is concerning, as it suggests that the transition to electric vehicles might face roadblocks. Germany, the bloc’s largest EV market, ended subsidies for EV purchases in December, which has negatively impacted BEV sales.
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The decline in BEV sales contrasts with the strong growth of hybrid electric vehicles (HEVs). HEVs saw a 26.4% annual increase in June, indicating a shift towards a more diverse approach to electrification. Overall, EVs, including BEVs, PHEVs, and HEVs, now account for 50% of all new car registrations in the EU.
Despite the mixed performance of EVs, leading European carmakers remain optimistic about overall sales growth in the EU. They believe that the market will continue to pick up throughout the year, driven by increased consumer demand and a favorable economic environment.
However, the future of BEVs in the EU remains uncertain. The recent slowdown in growth highlights the need for consistent and predictable policies to encourage widespread adoption. Countries like Belgium and Italy, which offer strong incentives, are seeing a flourishing BEV market, demonstrating the importance of government support.