European automakers call for urgent policy action as EV demand falls

The European Automobile Manufacturers' Association has called on EU institutions to provide urgent relief measures for boosting battery electric vehicle sales before new CO2 targets for cars and vans come into effect in 2025.

The ACEA said in a Sept. 19 statement that the continuous downtrend in the market share of BEVs was a worrying signal to industry and policymakers.

BEV sales in Europe totaled 92,627 units in August, down 43.9% year on year, the fourth consecutive month of decline, and accounted for 14.4% of total sales, down from 21% a year ago, according to August vehicle sales data released Sept. 19.

Large drops were seen in Germany, where sales fell 68.8% year on year, and in France where sales were down 33.1%.

For January-August, European BEV sales totaled 902,011 units, down 8.4% year on year, making up a 12.6% market share, down from 13.9% a year ago.

The ACEA also urged the European Commission to bring forward the CO2 regulation reviews for light-duty and heavy-duty vehicles, currently scheduled for 2026 and 2027, respectively, to 2025.

While the automotive industry had invested billions in electrification to bring vehicles to market and was playing its part in the transition, the other necessary elements for this systemic shift were not in place and there was also rapid erosion of the EU's competitiveness, the ACEA said.

"We are missing crucial conditions to reach the necessary boost in production and adoption of zero-emission vehicles: charging and hydrogen refilling infrastructure, as well as a competitive manufacturing environment, affordable green energy, purchase and tax incentives, and a secure supply of raw materials, hydrogen and batteries," the ACEA Board said in the statement.

The EU needed eight times more charging points per year by 2030 to meet CO2 targets, according to ACEA research.

It said there was not sufficient economic growth, consumer acceptance or trust in infrastructure and, as a result, the zero-emissions transition was highly challenging and there were rising concerns about meeting the 2025 CO2 emissions reduction targets for cars and vans.

"The current rules do not account for the profound shift in the geopolitical and economic climate over the past years and the law's inherent inability to adjust for real-world developments further erodes the competitiveness of the sector," the board said.

The current rules were raising the prospect of multibillion-euro fines, which would rather be invested in the transition, or unnecessary production cuts, job losses, and a weakened European supply and value chain, it said.

"The industry cannot afford to wait for the review of the CO2 regulations in 2026 and 2027, we need urgent and meaningful action now to reverse the downward trend, restore EU industry competitiveness and reduce strategic vulnerabilities," the ACEA Board said.

The ACEA said it was ready to discuss a package of short-term relief for 2025 CO2 norms, as well as a fast-track, comprehensive and robust review of the CO2 regulations, plus targeted secondary legislation, to get the transition on track and "secure Europe's industrial future."

Overall Aug sales down

Meanwhile, overall new EU car registrations fell 18.3% year on year to 643,637 units, with losses across the four largest markets.

Sales in Germany fell 27.8% on the year to 197,322 units while in France they fell 24.3% to 85,977 units.

In Italy, sales were down 13.4% year on year at 69,161 units and sales in Spain dropped 6.5% to 52,322 units.

However, overall EU car sales rose 1.4% year on year to almost 7.2 million units in January-August, due to flat performances in Germany and France and higher sales in Spain and Italy, the ACEA said.

August plug-in hybrid car registrations fell 22.3% year on year to 45,590 units, which was a total market share of 7.1%, down from 7.4% a year ago.

However, hybrid-EV sales rose 6.6% on the year to 201,552 units in August, with a market share of 31.3%, up from 24% in August 2023.

August gasoline car sales fell 17.1% on the year while diesel car sales fell 26.4%.

The combined share of gasoline and diesel cars dropped to 44.3% from 45.1% a year ago, the ACEA said.