Electricity sales in Europe slow down due to the economic crisis

Europe is experiencing times of instability. The old continent has faced too many setbacks at once. The situation is reaching a critical point, and experts announce a very tough end to the year with a more than possible entry into recession for the last quarter of the year. The situation has been making itself felt in the new car market for some time. Until now the electrics seemed to escape the negative trend, but In the month of May, a slowdown in electricity sales in Europe has already begun to be noticedalthough the data is still positive.

With exponential growth for months, last May the electricity sector increased its sales by only 3.6% compared to the same period of the previous year. Electric cars have been a key factor in growth for European manufacturers, but the segment is beginning to feel the effects of the current crisis. Last May in In Europe, a total of 173,400 electrified units were sold, between BEV, HEV and PHEVcompared to 173,400 units registered in the month of May 2021.

The electricity market grows, but at a slower rate than in other years

In market share, the increase is 3%, going from 16.2% share in May 2021 to 19.2% this year. Looking at sectors, pure electrics have grown by 19%, representing 56% of total sales. On the contrary, plug-in hybrids have fallen by 12% in sales compared to the month of May last year. The high price and buyers’ distrust of the new regulations regarding PHEVs are causing many doubts among buyers. Many of them prefer to make the leap to a 100% electric format.

Volkswagen, sales leader

As for brands, the Volkswagen Group has been at the forefront in volume of electrified sales with 24.4% of the total. Following the Germans is Grupo Stellantis, which reaches a sales volume of 20.5%. In third place on the podium we find the Hyundai Group with 12.1% of total sales, which demonstrates the tremendous positive impact that Korean brands are experiencing in recent times. The great offer and the adjusted prices are its main attraction. The brands that have best weathered the European supply crisis.

If we focus on specific units, the FIAT 500 has been the best-selling model in the category of 100% electric cars with an increase of 71% compared to last year. Behind him was the Peugeot 208 with a high demand in markets such as the Netherlands, where growth has been 365%. The Volkswagen ID. 4 closes the list of the best sellers, although sales have fallen by 12% due to the lack of units in Germany, its main market.

General context

Moving away from the electrified sector, the European automotive scene is at least bleak. In the month of May, a total of 935,854 units were registered, 4,482,463 units in the annual accumulated. If we take into account the figures for last year, we see a drop of 13%, the worst figure since 1985 (with the exception of 2020). Of the 27 markets, only 5 obtained positive data, while 15 countries recorded double-digit falls, as is the case of Germany, France, Spain or Italy. Nothing indicates that the situation until the end of the year will improve, rather the opposite. Difficult times are ahead for an industry that has been hit hard in the last two years.

Font: JATO Dynamics

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