Electric vehicle demand in Europe slows as price concerns impact growth. Jato Dynamics offers insights into the latest market trends and data.
Table of Contents
Electric Vehicle Market Growth in Europe Slows Down
According to the latest registration figures released by Jato Dynamics, the demand for electric vehicles (EVs) across Europe has seen a noticeable slowdown.
The market share for EVs grew by just 0.3 percentage points in April despite a 15% rise in monthly registrations.
This increase is significantly lower than the robust monthly growth recorded last year.
Critical Data from Jato Dynamics
- Market Share Increase: 0.3 percentage points in April
- Monthly Registration Rise: 15%
- Total New Vehicles Registered in April: 1,080,517 (up 12.6% from April 2023)
- Year-to-Date Registrations: 4,461,734 new units (up 6.7% from last year)
Felipe Munoz, a global analyst at Jato Dynamics, commented on the current state of the electric vehicle market:
“The electric car market is not performing as well as it was this time last year. This is largely due to ongoing price cuts, which have raised concerns among consumers over the residual value of EVs and uncertainty about how prices will evolve in the coming months.”
Broader Trends in Europe’s Car Market
April was generally a positive month for Europe’s new passenger car market.
The increase in new vehicle registrations was primarily driven by demand for B-segment hatchbacks and compact cars.
However, the trends in EV growth contrasted with the overall market increase.
Performance of SUVs and Chinese-made Cars
Alongside EVs, SUVs and Chinese-made cars have significantly driven market growth in recent years.
However, Jato’s latest data reveals a shift in this trend.
SUV Market Share and Growth
- Market Share Drop: From 51.3% in April 2023 to 51.1% in April 2024
- Registration Increase: 12% year on year (lagging overall market growth)
Chinese-made Cars: A Growing but Limited Presence
Despite the success experienced by Chinese automaker BYD in April, Chinese-made cars have yet to become a dominant force in Europe.
The overall market share of Chinese car brands in Europe increased from 2.22% in April 2023 to 2.35% in April 2024.
MG, a brand often associated with the West, accounted for 68% of the 25,360 total units registered by Chinese brands during the month.
Munoz explained the situation:
“Although there is lots of noise around the arrival of Chinese car brands in Europe, they are still a rarity – evidenced by the slow uptick in registrations over the past year. MG, which many still associate with the West, accounted for two in three registrations of Chinese-made vehicles. The continued inability of Chinese-made vehicles to truly penetrate Europe’s automotive market could result from the ongoing perception issues that Chinese OEMs face, particularly in light of negative attention from the European Commission’s investigation. However, Chinese-made cars continue to prosper in the BEV market with a market share of 6.6%.”
Key Figures at a Glance
| Category | April 2023 | April 2024 | Growth |
|---|---|---|---|
| Total Vehicle Registrations | 959,895 | 1,080,517 | +12.6% |
| EV Market Share Increase | – | 0.3 pp | – |
| SUV Market Share | 51.3% | 51.1% | -0.2 pp |
| Chinese Car Market Share | 2.22% | 2.35% | +0.13 pp |
| MG Registrations | – | 68% of Chinese brands | – |
Conclusion
The data highlights a complex landscape for Europe’s automotive market. While there is growth in specific segments, such as compact cars and B-segment hatchbacks, the electric vehicle market faces challenges.
Price concerns and market uncertainties dampen the rapid growth in previous years.
Meanwhile, the market share for SUVs shows signs of plateauing, and Chinese-made cars, though growing, still struggle with perception issues.
As the industry evolves, stakeholders must address these challenges to sustain and enhance growth, particularly in the electric vehicle sector.
Post's Author
