While the year 2023 ended with a bang for electric cars in Europe, even surpassing the market share of diesels, the month of January 2024 was quite different. Particularly at issue: the decline in government aid in various countries. But it is not the only reason. We will explain everything to you.
Citroën ë-C3 // Source: Marie Lizak for Aroged
Electric cars have broken numerous records in Europe in 2023. First of all because the Tesla Model Y was the best-selling car on the continent, all energies combined, but also because the market share of new electric cars has exceeded for the first time that of diesel vehicles over the entire year.
Where to get the champagne? Not so fast, since ACEA (the Association of European Automobile Manufacturers) has just revealed the European sales figures for January 2024. With a sharp decline in market share for electric cars compared to previous months. What happened ?
The electric car is falling behind the diesel
January 2024 was a good month for car sales in Europe with 851,690 registrations in total, an overall increase of 12.1% compared to January 2023.
Source: ACEA
Even for electric cars, one might think that the year is off to a good start: sales are up 28.9% compared to January 2023, with many markets up: +75.5% for Belgium, +72.2% for the Netherlands, +36.8% for France and +23.9% for Germany.
However, with 92,741 registrations in one month, it is much, much less than in December 2023, when there were 160,700. In fact, the market share is falling, going from 18.5% in December 2023 at 10.9% in January 2024. Enough to be overtaken again by diesel, which rises to 13.4%!
The end of subsidies had an impact
Even if it is not the one and only responsible, the sudden end of subsidies for the purchase of an electric car in December 2023 in Germany has inevitably had an impact: in terms of market share, the electric car goes from 18 .4% over the whole of 2023 to only 10.1% in January 2024.
The big winners? Gasoline and diesel, which increase respectively from 34.4% to 39% and from 17.1% to 21.9% over the same periods. Let's not forget that Germany is the largest automobile market in Europe, and these changes inevitably had an impact on the overall market.
We can also think that many manufacturers have registered numerous cars in December 2023 to form a strategic stock, and inflate sales figures. Which can therefore bias the comparison.
Dacia Spring // Source : Dacia
So watch out for France in the coming weeks. Its ecological bonus has been revised, notably with a reduction to 4,000 euros for the wealthiest households and an outright elimination for businesses, which may scare future customers.
Finally, let us note a possible expectation among consumers regarding the next highly anticipated launches: the new Dacia Spring and the Citroën ë-C3, at very low prices, are arriving in the summer, the Renault 5 E-Tech will be marketed in the fall, while that, in higher segments, the Renault Scénic E-Tech and Peugeot E-3008 arrive in the spring.