Electric Vehicle Growth Stalls in Europe - EY
(17 July 2018 - Europe) Sales growth of electric and plug-in hybrid cars has slowed across the European Union’s (EU) major markets during H1 2018 due to limited driving range and a lack of extensive charging facilities.
Registrations of electric cars rose 33 percent in the six months to June 2018 compared to a 54 percent jump in H1 2017 according to EY. Strong demand in Germany, the EU’s biggest auto market, wasn’t enough to offset slowing growth in the UK. Carmakers in Europe are under pressure to meet tough new EU rules on lowering fleet carbon dioxide emissions that will be phased in during 2020.
Consumers staying on the fence on electric cars, and favouring gasoline cars over diesel engines, raises the stakes for manufacturers like Mercedes-Benz maker Daimler AG and Fiat Chrysler Automobiles NV who risk steep fines if they exceed the new ceiling. Diesel cars emitting about a fifth less CO2 than equivalent gasoline vehicles. Demand for diesel has fallen in the EU’s biggest automotive markets during H1 2018 as buyers exhibit concern about driving bans in some cities, a long period of time after Volkswagen emissions cheating scandal. At the same time, sales of gasoline cars have jumped 16 percent. EU diesel registrations continue to slide with gas cars sales growth increasing. Carmakers including BMW AG, Daimler and Volkswagen will unveil a range of new electric products in the coming years such as the BMW iX3 sport utility vehicle and VW’s I.D. mass-market range, a standalone battery line-up.
“Electric cars remain a niche product for now,” EY partner Peter Fuss said in a statement. “Charging infrastructure remains inadequate and the models currently available mostly don’t offer a good enough range. The situation will only change in the medium-term, starting in the luxury segment, electric powertrains will establish themselves as serious alternatives.”
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