Increase in electric vehicle purchases - market shows minor stabilization
Euroreckon: Electric Vehicle Demand Bolsters EU Car Market in April
The European Union's car market has shown its first growth this year, boasting a 1.3% increase in new vehicle registrations compared to the same period last year. According to the Association of European Automakers (ACEA), this uptick is primarily attributed to the soaring interest in electric vehicles (EVs).
More European buyers opted for electric-powered cars in April, with sales escalating by over 33% to reach approximately 145,341 units. The surge in demand has resulted in the market share of EVs increasing to 15.3% in the first four months, an increase of three percentage points compared to the previous year.
The continued evolution of battery technology and the decline in battery costs have made electric cars more appealing to consumers, who are increasingly recognizing their environmental and economic advantages. Hybrid cars, whose battery is charged during travel, have equally captured the market's attention.
Sigrid de Vries, ACEA's Director-General, acknowledged that more favorable conditions are needed to ensure the widespread adoption of electric vehicles. This includes incentives for purchasing electric cars, the expansion of charging infrastructure, and reduced electricity prices.
If plug-in hybrids, whose battery can also be charged at home, are taken into consideration, nearly 43% of new cars sold in the EU are hybrids. Internal combustion engine vehicles now account for approximately 38% of the market.
The Volkswagen Group emerged as the leading manufacturer in the EU, selling almost 260,000 units in April - a 2.9% increase from 2024. BMW reported an almost 10% sales increase to 66,661 cars, Mercedes sold 46,415 vehicles - a 0.7% increase, while Stellantis experienced a 1.1% drop in sales. Toyota registered an 8.6% decrease, and Tesla sustained a sales decline of over 50%.
Europe's electric vehicle market is projected to grow at a compound annual growth rate (CAGR) of 29.17% from 2025 to 2034, mirroring significant investments in electric vehicle production by major automakers. The market is expected to maintain its strong growth trajectory, setting Europe on course for a bold shift towards sustainable mobility.
- The rise in electric vehicle (EV) demand is a significant factor in the community policy focus, as the European Union encourages small and medium-sized undertakings (SMEs) to invest in electric automotive technology to foster sustainable lifestyle choices.
- The increasing popularity of electric cars among European consumers has an impact on various industries, such as finance, as SMEs seek funding for EV development and manufacturing.
- In the transportation sector, the growth in electric vehicle sales indicates a shift towards more environmentally friendly transportation options, resulting in less reliance on fossil fuels and reduced carbon emissions.
- As the European electric vehicle market expands, it opens opportunities for SMEs specializing in the automotive industry, particularly those who innovate in electric-vehicle technology, aiming to compete with major players and capture a larger market share.
