Automotive News Europe — 2024-10-22
Automotive Industry
Europe car sales fell in September 2024 for the first consecutive monthly decline in more than two years.
Car sales in Europe fell in September for the first consecutive monthly decline in more than two years as the region’s economy continued to stagnate and consumers trimmed spending.
New-car registrations in the EU, EFTA and UK markets fell 4.2% compared to a year ago, to 1.12 m units, the industry body ACEA said in a statement on 22 October 2024.
Gains in electric-vehicle sales were not enough to offset declines for combustion-engine models.
European automakers have struggled to improve sales in their home market as a protracted downturn and higher interest rates cut into spending.
Stellantis posted one of the biggest drops, with registrations plummeting 26% in the region.
While sales picked up slightly in the UK and Spain, they fell in Germany, France and Italy, pulling down total deliveries across the region.
Sales of EVs bounced back in September, a welcome sign for the industry that has seen demand for full-electric cars decline after governments pulled subsidies last year.
EV deliveries jumped 24% in the UK, where automakers are heavily discounting to try to comply with the government’s zero-emissions vehicle sales mandate.
In Germany, where the government is discussing the potential of new incentives, EV sales increased 8.7%.
Year-to-date, EV sales in the region are still down 2.6%. The outlook has been complicated by planned tariffs on Chinese-made EVs of as high as 45%, which are scheduled to take effect in the coming weeks.
The EU and China have pledged to work toward an alternative agreement that would avoid the need for levies, and German Chancellor Olaf Scholz reiterated his opposition to the tariffs on 21 October 2024.
With consumers balking at the high costs of owning EVs, Europe’s biggest automakers are now trying to revive sales with lower-cost models.
Renault unveiled its new €25,000 ($27,053) R5 last week, while Stellantis started shipping its €23,300 Citroen e-C3 city car in mid-September.
The region’s biggest automaker, Volkswagen Group, is weighing unprecedented factory closures in Germany due to falling demand.
Its sports-car brand Porsche and rival Mercedes-Benz have adjusted their EV ambitions over less-than-expected momentum for plug-in models.
A Europe-wide downturn in EVs increases the risk for automakers such as VW, Stellantis and Renault to pay fines of as much as €15 bn if they fail to meet tighter European fleet-emission rules are set to kick in.