The sale of new electric vehicles in the European Union in May decreased by 12% compared to last year, according to the Association of European Automobile Manufacturers (ACEA).
In Germany, the EU's biggest market for electric cars, sales fell by 30% due to the end of subsidies for the purchase of electric cars from December 2023, leading to a 16% drop in sales this year. In general, car sales in the EU decreased by 3% in May, and in Great Britain and the countries of the European Free Trade Association (EFTA) – by 2.6%.
Demand for electric cars in Europe is slowing after several years of growth, while competition to produce more affordable models is intensifying. The European Commission has introduced temporary tariffs of up to 38.1% on electric cars from China, which will take effect in July. This led to a 34.2% drop in Tesla's EU sales in May, and the company is expecting higher prices for its Chinese models due to the new tariffs.
Still, electrified vehicles, including all-electric models, hybrids and plug-in hybrids, accounted for 48.9% of all new passenger car registrations in the EU in May, up from 46.2% a year earlier. The share of electric vehicles decreased to 12.5%, while the share of hybrids increased to 29.9%.
ACEA notesthat the stagnation of the electric car market was expected, but that sales are expected to increase from 2025, taking into account the new EU car emissions targets.