🔍 The EU car market is in decline! 🚗

🔍 The EU car market is in decline! 🚗

August 2024 brought worrying signs for the European automotive industry. New car registrations have fallen by 18,3 % across the major markets. This reflects not only short-term problems, but also long-term changes that could fundamentally affect investment in the EU automotive industry. 📉

📊 Electric cars at a crossroads? ⚡️
The biggest decline was seen in the pure electric vehicle (BEV) segment , where sales fell by dramatic 43,9 % compared to last year. While in 2023, electric vehicles accounted for 21 % of the market, this year it is only 14,4 %.

This raises a question for me about the future of electromobility, which has long been considered "gold rush" of the automotive industry. However, this trend also suggests that the market is stabilising and is entering a phase where more innovation, support and adaptation to changing conditions will be needed. 🚀

🔄 Hybrids on the offensive 🔋
On the other hand, hybrid electric vehicles (HEVs)are performing well beyond expectations. Their sales are up by 6,6 % and now account for over 31 % of the total car market.

Hybrid technology offers a solution for customers who are not ready to switch fully to electric vehicles but are looking for greener alternatives. This segment may be the key to the transition period before full electric mobility. 🌍

⛽️ The end of traditional fuels?
Petrol and diesel cars continue to lose ground. Sales of petrol cars have fallen by 17,1 %, while diesel cars saw a decline of 26,4 %. The market share of diesel cars fell to just 11,2 %. This decline signals that the market is increasingly moving away from traditional fuels.

🛑 What about regulation?
European Automobile Manufacturers' Association (ACEA) has expressed concern over the fourth consecutive monthly decline in EV sales. Manufacturers are calling for urgent action from the EU to prevent further declines, especially in light of new CO₂ emission standards coming into force in 2025. Regulatory changes are expected to have a huge impact on the entire market - including supply chains and EV infrastructure.

🚀 The future of the automotive market is full of change and so far it doesn't look good for European carmakers. Volkswagen $VOW3.DE-2.9% is one of the first to announce massive layoffs and factory closures. In fact, with these "classic" car companies don't look good at all, let's see how it all plays out. I'm not so worried about the premium brands ($MBG.DE-7.0%, $RACE+3.6%, $P911.DE-5.7%), they can always find their customers. However, another issue is competition from China, which can provide EVs at unbeatable prices.