The European automotive sector is experiencing significant challenges, particularly in the electric vehicle (EV) market. Sales of electric cars in Western Europe dropped to 125,000 units, marking a 36% decline compared to the previous year. In the European Union alone, the decrease is even more pronounced at 43.9%.
Outside Europe, Toyota has scaled back its global EV production target by 30%, now aiming for 1 million units by 2026. This reduction contrasts sharply with the substantial investments made by major manufacturers, such as Stellantis, which plans to invest €50 billion by 2030.
High prices for electric vehicles, typically 20% more than combustion engine cars, and uncertain European regulatory policies have hindered market growth. Additionally, the end of purchase incentives in countries like Germany has led to a dramatic drop in sales.
Chinese automakers are intensifying competition, bolstered by long-standing incentive policies and rapid charging infrastructure development. The European Commission's decision to impose tariffs on Chinese EVs has sparked division among EU member states.
Consequently, major automotive groups are revising their sales forecasts. Volkswagen has warned of potential plant closures in Germany due to a projected decline of 500,000 vehicle sales. BMW anticipates a drop in operating profit margins, and Mercedes-Benz has lowered its 2024 estimates due to a downturn in the Chinese market. Aston Martin also plans to produce about 1,000 fewer cars than previously intended, reflecting a nearly 10% reduction in sales.
In response to these challenges, ACEA, representing European automakers, is urging EU institutions for urgent economic support measures before new CO2 targets for cars and vans take effect in 2025.