Hybrid Overtakes Petrol in Slowing EU New Car Market in Sept, ACEA Says
Tuesday, Oct 22, 2024 12:10 am ET
1min read The European Automobile Manufacturers' Association (ACEA) has reported a significant shift in the EU new car market, with hybrid vehicles overtaking petrol cars in September. This development comes amidst a broader slowdown in the market, with new car registrations declining by 18.3% year-on-year.
The decline in new car registrations was particularly pronounced for battery-electric vehicles (BEVs), which experienced a 43.9% drop in August. This downturn can be attributed to several factors, including the introduction of provisional tariffs on Chinese-built BEVs and the end of BEV subsidies for businesses in Germany.
In Germany, the sharp decline in BEV registrations was partly due to an incentive pull-forward effect in August 2023, with BEV subsidies for businesses ending at the start of September that year. This rush to take advantage of the incentives resulted in BEV registrations topping the country's figures for the first time ever. Consequently, the subsequent sharp fall is more a result of an anomaly rather than a serious lack of demand.
In France, the unique BEV incentive program, determined by a BEV's CO2 footprint, affects more affordable all-electric vehicles made in China. This has led to a 33.1% drop in BEV registrations in the country.
The overall decline in new car registrations in major EU markets has had an impact on petrol car sales. However, the shift towards hybrid vehicles has been driven by several factors. The increased availability and affordability of hybrid vehicles, combined with government incentives and regulations, have played a significant role in this trend.
As car manufacturers adapt their product portfolios to cater to the growing demand for hybrid vehicles, the EU market is experiencing a significant shift in consumer preferences. The increasing popularity of hybrid vehicles can be attributed to their lower emissions and improved fuel efficiency compared to conventional petrol cars.
In conclusion, the hybrid vehicle segment has overtaken petrol cars in the slowing EU new car market in September. This shift is driven by factors such as the introduction of provisional tariffs on Chinese-built BEVs, the end of BEV subsidies for businesses in Germany, and the unique BEV incentive program in France. As car manufacturers continue to adapt their product portfolios and governments implement incentives and regulations, the demand for hybrid vehicles is expected to remain strong in the EU market.
The decline in new car registrations was particularly pronounced for battery-electric vehicles (BEVs), which experienced a 43.9% drop in August. This downturn can be attributed to several factors, including the introduction of provisional tariffs on Chinese-built BEVs and the end of BEV subsidies for businesses in Germany.
In Germany, the sharp decline in BEV registrations was partly due to an incentive pull-forward effect in August 2023, with BEV subsidies for businesses ending at the start of September that year. This rush to take advantage of the incentives resulted in BEV registrations topping the country's figures for the first time ever. Consequently, the subsequent sharp fall is more a result of an anomaly rather than a serious lack of demand.
In France, the unique BEV incentive program, determined by a BEV's CO2 footprint, affects more affordable all-electric vehicles made in China. This has led to a 33.1% drop in BEV registrations in the country.
The overall decline in new car registrations in major EU markets has had an impact on petrol car sales. However, the shift towards hybrid vehicles has been driven by several factors. The increased availability and affordability of hybrid vehicles, combined with government incentives and regulations, have played a significant role in this trend.
As car manufacturers adapt their product portfolios to cater to the growing demand for hybrid vehicles, the EU market is experiencing a significant shift in consumer preferences. The increasing popularity of hybrid vehicles can be attributed to their lower emissions and improved fuel efficiency compared to conventional petrol cars.
In conclusion, the hybrid vehicle segment has overtaken petrol cars in the slowing EU new car market in September. This shift is driven by factors such as the introduction of provisional tariffs on Chinese-built BEVs, the end of BEV subsidies for businesses in Germany, and the unique BEV incentive program in France. As car manufacturers continue to adapt their product portfolios and governments implement incentives and regulations, the demand for hybrid vehicles is expected to remain strong in the EU market.
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