European Car Sales Hit a Speed Bump in November
The European car market has hit a roadblock, with new car sales growth turning negative in November. This reversal comes after a slight uptick in October, and is largely attributed to significant declines in France and Italy, as well as stagnant sales in Germany.
A Perfect Storm of Challenges
European automakers are facing a multitude of challenges, including weak demand, high production costs, and the daunting task of transitioning to electric vehicles (EVs). To make matters worse, they must also contend with increasing competition from Chinese manufacturers.
The Numbers Tell the Story
In November, the number of new vehicles registered in the EU, Britain, and the European Free Trade Association (EFTA) fell by 2% year-on-year to 1.06 million. While Volkswagen and Renault saw registrations rise by 2.8% and 9.2%, respectively, Stellantis experienced a 10.8% decline.
Electric Vehicle Sales Stall
Sales of fully electric cars (BEVs) plummeted by 9.5% in November, driven largely by sharp declines in France and Germany. However, hybrid car (HEV) sales bucked the trend, rising by 18.5% and marking a third consecutive month of growth. Notably, Tesla and SAIC Motor, who are subject to new EU tariffs on Chinese-made cars, saw sales in the bloc decline by 40.9% and 7.8%, respectively.
Electrification Efforts Gain Traction
Despite the challenges, electrified vehicles – including BEVs, HEVs, and plug-in hybrids (PHEVs) – accounted for 55.8% of passenger car registrations in November, up from 51.8% in the previous year.
Industry Leaders Sound the Alarm
As the EU’s new carbon dioxide emission reduction targets loom next year, the European Automobile Manufacturers Association (ACEA) is calling for a review of the regulation. ACEA Director General Sigrid de Vries emphasized the need for a more realistic approach, citing the high cost of energy and electricity prices, as well as the lack of raw materials and supply chain infrastructure in Europe.
New Leadership and a Fresh Perspective
In a move to address these challenges, ACEA has appointed Mercedes Chairman Ola Källenius as its new president, effective January 1. Additionally, Stellantis will rejoin the organization next year, bringing a fresh perspective to the table.
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