Europe’s Electric Car Sales Slump amid Demand for Cheaper Brands

After years of accelerating growth, Europe’s electric car sales appear to be entering a go-slow zone as drivers wait for better, cheaper models that are two to three years down the road.

Fully-electric sales in Europe were up 47% in the first nine months of 2023, but instead of celebrating, automakers including Tesla (TSLA.O), Volkswagen (VOWG_p.DE) and Mercedes-Benz (MBGn.DE) sounded a sombre note.

High interest rates and a subdued market are putting customers off, they warned, with Volkswagen’s EV order intake half what it was last year.

Dealers in Germany and Italy as well as research by four global data analysis firms say there is more behind the slower uptake than economic uncertainty, with the consumers unconvinced that EVs meet their safety, range and price needs.

AutoTrader says new EVs in Britain are still on average 33% more expensive than fossil-fuel models.

And most new models in the pipeline targeting entry-level consumers will not hit the market before 2025 at the earliest – by which time they will be contending with an expanded Chinese line-up from BYD (002594.SZ) to Nio (9866.HK) in Europe.

Reuters/Hauwa Abu