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Electric car sales: some key figures
After years of dazzling growth, electric car sales will take a significant pause in 2024.
8 months after the start of 2024, new vehicle new vehicle registrations recorded a increase of 1.4%to almost 7.2 million units. L'Spain (+4.5%) andItaly (+3.8%) reported positive performances, albeit modest.
Conversely, the French and German markets stagnated, posting results of -0.5% and -0.3% respectively.
Indeed, in August 2024, electric vehicle registrations fell by 43,9 % (or 92,627 units) in the European Union compared with the previous year, according to the European Automobile Manufacturers Association (ACEA).
This decline is particularly pronounced in leading countries such asGermanywhere fell by 68.8%.. The Franceanother key market, recorded a decline of 33.1%..
These figures contrast with the performance of the first months of 2024, when electric sales electrical sales growth was still 5% higher in the first quarter than in 2023. However, as stated in the preamble, several factors have dampened this momentum, such as :
- rising raw material costs,
- supply chain disruptions,
- and the reduction of public aid in certain countries.
More globally, for the first timeelectric for the first time, electric mobility fell below 20% market share that same year. According to Avere-France, this is the 4th consecutive month in which registrations have fallen below than during the same period in 2023.
To support these remarks, here is a graph highlighting the fluctuations in new electric car registrations between 2023 and 2024:
Source: ACEA, data in thousands
But that's not all: car vehicle sales in Europe are below the levels observed prior to the COVID-19 pandemic.. Volkswagen indicated in September that this trend could continue for the foreseeable future.
At the same time, sales of the 3 main European carmakers were down on the previous year, namely :
- Renault (-13,9 %),
- Stellantis (-29.5%),
- and Volkswagen (-14,8%).
Similarly, according to Reuters, sales of electric vehicle manufacturer Tesla have fell by 43.2% in in Augustwhile those of Chinese manufacturer SAIC Motor were down 27.5%..
Nevertheless, while we've seen a slowdown in the growth of new electric vehicle sales in recent months, it's important to qualify this with some encouraging market figures to understand the context.
First of all, it should be remembered that the electric vehicle market has grown by leaps and bounds in recent years. To give you some concrete figures, for the year 2023, sales sales increased by 37representing 14.6% of the market (compared with 12.1% in 2022), i.e. 1 in 5 new cars purchased were electric.
To back up these comments, the association Transport & Environment (T&E) notes a steady increase in electric cars for private customers. In France, 25% of new cars registered by private individuals in the first half of 2024 were electriccompared with 20% over the same period in 2023.
The same association is even keen to point out that it would be a mistake to claim that the French don't want to adopt electric vehicles.
Secondly, T&E pointed out that electric vehicles would account for 10.7% of new car registrations in companies in the first half of 2024despite the abolition of the ecological bonus for professionals. In contrast, they accounted for 12% for the whole of 2023.
Indeed, this figure is all the more significant given that companies are at the heart of the new vehicle market, accounting for between 50% to 60% of new vehicle registrations. This increase was probably driven by the LOM law law, which is getting tougher by the year, especially now that a bill has been passed to accelerate the ecological transition within companies.
Read more : Bill to speed up the greening of corporate fleets
But that's not all: the market for used electric vehicles is booming, buoyed by falling prices for older models. In fact, by the 1st half of 2024sales sales of used electric cars rose by 68%.. By contrast, sales of combustion-powered cars rose by just 25%.
What are the causes of the current situation?
This decline is due to a number of factors industrial and geopolitical factors. As a result, the slowdown in electric car sales can be explained by several key factors, which deserve to be analyzed to better understand this current dynamic.
Reduction/elimination of public incentives for the purchase of electric vehicles
The financial incentives have played a key role in the development of electric vehicles. These government incentives take several forms: ecological bonus bonus, conversion bonus for trade-in of an old vehicle, tax credit for charging charging stations...
To consult : Aid for the installation of charging stations in 2024
In recent years, several countries have begun reducing or even abolishing state subsidies for the purchase of electric vehicles. This inevitably leads to higher acquisition costs for potential buyers, discouraging consumers from switching to electric vehicles and partly explaining the slowdown in sales of new electric vehicles.
The first major reduction in 2024 was the environmental bonus. Since its launch in France in 2007, this state aid has undergone a number of changes.
Under François Hollande, it was reduced from €7,000 to €6,000 for these vehicles, before Emmanuel Macron raised it to €7,000 until the end of 2021. Thereafter, it has decreased by €1,000 each yearreaching 4,000 in early 2024with the exception of low-income households who will continue to benefit from a bonus of 7 000 € (for households with income not exceeding €15,400). Please note that this ecological bonus is no longer available for professional leasing.
Read more : Electric car leasing for professionals: the essential guide
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At the same time, Gabriel Attal, former Prime Minister, had envisaged on August 29 via a letter sent to the Ministry of Ecological Transition a ⅓ reduction in subsidies for electric vehicles.. In other words, he wanted a 500 million reduction in funds allocated to promoting the electrification of new vehicles as part of the budget preparation for the Finance Act 2025.
To make matters worse, in recent months the European Commission has also introduced additional customs duties, known as "countervailing duties", on Chinese vehicles or vehicles assembled in China.
This is intended to combat unfair competition and dumpingwhich unfortunately has the effect of increasing the price of electric vehicles.
For further information : Tax on Chinese electric cars: the impact on Europe and Tax on Chinese electric cars: 30 models affected
Nevertheless, this decline has been partly offset by the introduction of social leasing, i.e. the possibility of taking out an electric car lease for a monthly rent of electric car lease for a monthly rental of €100..
This scheme, aimed at the most modest households, has been a resounding success: by the end of January 2024, more than 90,000 people had applied for access for access to the scheme. One month later, around half of these requests had been approved (more than 50,000 orders), far exceeding the government's initial target ofs initial target of 20,000 to 25,000 electric vehicles.
In other words, it demonstrates the growing interest in electric mobility.
For more information : An electric car for €100 a month?
Impact of the general economic context: inflation, raw material costs and rising electricity prices
The current economic climate is having a major impact on the electric vehicle market. This increase, estimated at 91% for certain raw materialsis weighing heavily on manufacturers, who are passing on some of these costs to consumers. Indeed, since 2022 prices of key battery components have risen significantlyi.e. :
Moreover, widespread inflation is eroding the purchasing power of consumers, who are becoming more reluctant to invest in expensive goods.
This particularly affects electric vehicles, whose prices, although gradually falling, are still high compared with entry-level combustion models (estimated at (estimated at 8,000 on average for certain segments). This inflation pushes consumers to prioritize immediate and essential expensesrather than long-term purchases such as an electric vehicle.
Nevertheless, it is important to note that 2024 offered a wide range of electric vehicles at affordable rates, such as:
- the MG4,
- the Renault 5,
- the Dacia Spring,
- the Citroën ë-C3,
- or the Renault Twingo E-Tech.
At the same time, certain types of electric vehicle are less expensive to insure, which is yet another reason tooptimize costs and to smooth out your initial investment in an electric car..
Consult : Electric cars: which models are the cheapest to insure?
On the other hand, one of the main advantages of electric vehicles is their lower cost of ownership compared to internal combustion vehicles. lower running costs than those of combustion-powered vehiclesThis is due in part to the lower cost of electricity compared with fuel. For example, the estimated cost of driving 100 kilometers in an electric car is around €2.9compared with an average of 7.5 for a petrol vehicle.
However, the the recent surge in electricity prices linked to the European energy crisis and tensions on energy markets has reversed this dynamic.
Read more : The impact of rising electricity prices on my electric car
As a result, electric vehicle owners were faced with higher recharging costs, eroding one of the main arguments in favor of electric vehicles.
But good news! Forecasts for electricity tariffs in France are encouraging, with a significant reduction expected in February 2025. Former French Minister of the Economy, Bruno Le Maire, has revealed a a 10-15% reduction in pricesThis reduction is the result of :
- boosting the nuclear sector
- and investment in renewable energies.
This announcement comes after a series of rate increases in 2023 and 2024, and is intended to offset the anticipated anticipated 12% rise in gas prices in July 2024.
For more information : Lower electricity prices accelerate the transition to electric power
In short, this "pause" could prove to be an opportunity to opportunity to rethink the supply chain, optimize industrial processes and thus offer more affordable vehicleswhile reinforcing our commitment to sustainable mobility.
Insufficient charging infrastructure?
One of the main reasons for the slowdown in electric car sales is the lack of public charging stations.
Currently, around ⅔ of French people consider that the network of charging stations is inadequate to meet the growing demand demand linked to the electrification of the vehicle fleet. This situation creates a psychological barrier for many potential buyersThis situation creates a psychological barrier for many potential buyers, slowing down the widespread adoption of electric vehicles.
To consult : The problem of public charging stations in France
Indeed, the lack of available charging stations in rural areas and even in even in some densely populated cities exacerbates this problem. But that's not all: in addition to the difficulty some people have in paying with a recharge card or a QR code and not by credit card at all kiosks, there's a new new scam has emerged.
Read more : Charging station: the new QR code scam
However, these comments need to be qualified. France remains one of the best-equipped countries in terms of recharging infrastructure with, to date 146,771 charging points open to the public according to Avere-France (August 2024 figures). In other words, this represents an increase of 37% compared with 2023, an encouraging figure that will soon erase the brakes on electromobility.
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In additionoptimization of existing infrastructures remains a major challengerequiring massive investment in :
- improve their accessibility,
- reduce charging times,
- and increase terminal power.
Electric cars: our responses to misinformation and conspiracy bashing
An unfavorable energy balance, the impossibility of battery recycling... in the media and on social networks, a multitude of information suggests that the electric car is not as environmentally friendly as is often claimed. that the electric car is not as environmentally friendly as is often claimed..
So, with so much misinformation circulating around the electric car, we're going to untangle the truth from the false in order to enlighten you and deconstruct the top 3 untruths tainting the image of eco-friendly vehicles.
If you'd like, we've written a full article on the subject: Disinformation on electric cars: when misinformation slows down innovation
Do electric cars really pollute more than combustion-powered cars?
One of the most common arguments against electric cars is their allegedly greater ecological impact than combustion-powered vehicles, mainly due to due to the production of batteries.
However, studies show that over their entire life cycle, electric cars generate far fewer CO₂ emissions. According to Avere France, an electric car emits 22% less CO2 than an equivalent diesel model and 28% less than a petrol model. This remains true regardless of :
- the origin of metals,
- manufacturing site,
- or the vehicle's charging mode.
All in all, the electric car is considered the most environmentally friendly means of individual transport, given that it emits 3 to 4 times less CO₂ than its thermal equivalent.
💡Good to know : Pollution is not restricted to air quality, it also encompasses noise pollution. Electric cars are likely to have a significant effect on people's health.
Nevertheless, although battery manufacture is energy-intensive, the use of electricity - often from renewable sources - quickly offsets this initial footprint. quickly offsets this initial footprint.
Read more : Charging your electric car with green energy: a good option?
Aren't electric car batteries difficult to recycle?
Another common misconception is that batteries cannot be recycled, which would contribute to a new type of pollution.
In fact, efficient recycling processes already exist and are making rapid progress. Companies specializing in the sector now estimate that they can recycle recycle between 70% and 90% of a battery's total weight. Although the recycling rate is not yet 100%, it far exceeds current regulatory requirements. Some techniques can also recycle up to 95% of a battery's components. of a battery's components.
💡Did you know that ? batteries, once reduced to 70% of their capacity, can be reused even before being recycled!
To consult : Recycling electric car batteries: European plan launched
In addition, technological innovations in battery technology are progressing at a steady pace, pointing to the imminent development of fully recyclable batteries. It's also worth noting that lithium-ion batteries batteries (frequently used in electric cars) are largely recyclable and require little maintenance. batteries last between 8 and 10 years..
What's more, to improve traceability and reduce the environmental impact of electric vehicle batteries, including those for cars, bikes and scooters, these will be equipped with a passport in the form of a QR code. From 2027batteries batteries will have to meet a definedcarbon footprint threshold to be marketed in Europe.
For more information : The electric car battery passport: what is it for?
Is therange of electric vehicles really an obstacle?
Among the main obstacles to the adoption of electromobility, the question of electric vehicle range consistently ranks in the top 3.
Nevertheless, technological advances have considerably increased the range of electric cars, which can now travel between 300 and 600 km per charge, depending on the model, or even more..
For example, we have the Mercedes-Benz EQS 450+ which offers a range of 725 km (WLTP cycle), the Tesla Model S Dual Motor with its 634 km rangeor the Mercedes EQE (639 km range).
To consult : Top 10 electric cars with the best range in 2024
It's also worth noting that, with the continuing expansion of charging points across Europe, long-distance travel is now more accessible (despite the problems of disparity and breakdown), lessening fears of limited autonomy.
Read more : Top 10 best charging stations in 2024
What's more, thecorresponds to the needs of the majority of drivers who make daily journeys of less than 50 kilometers.
💡Did you know that ? 95% of car journeys made by the majority of French people never exceed 300 km.
Conclusion: A necessary turning point for a sustainable future
The current slowdown in sales of electric cars, while notable, does not call into question the underlying trend towards cleaner, more sustainable mobility.. While challenges remain, such as access to recharging infrastructure and fluctuating energy prices, solutions are being developed.
The carmakers are investing heavily in research and development of new battery technologiestechnologies, offering ever more efficient electric vehicles efficient and affordable. At the same time, public authorities are implementing incentive policies to encourage the adoption of these vehicles and accelerate the energy transition.
At Beevwe're convinced that the future of mobility is electric. By offering intelligent recharging solutions tailored to every need, we're helping to make the transition to electric vehicles smoother and more accessible.
So, are you ready to make the leap to electric? Discover our offers on our website and join the community of drivers committed to a greener future.
