New car sales in the European Union have plummeted to their lowest level in three years, with a steep decline of 18.3% in August 2024, driven largely by significant losses in major markets like Germany, France, and Italy. According to data from the European Automobile Manufacturers’ Association (ACEA), the downturn is particularly troubling for the electric vehicle (EV) segment, which saw a dramatic 43.9% drop in sales last month.
In August, just 92,627 battery-electric vehicles (BEVs) were sold across the EU, a sharp contrast to the 165,204 units sold during the same period in 2023. This marks the fourth consecutive month of declining EV sales, shrinking their market share from 21% to 14.4%. The decline is most pronounced in Germany, where sales plummeted by 68.8%, and France, which recorded a 33.1% drop.
Plug-in hybrid cars also faced challenges, with sales down by 22.3%, accounting for just 7.1% of the total market, compared to 7.4% last year. Meanwhile, hybrid-electric vehicles were the only segment to see growth, with a 6.6% rise in sales, particularly in Spain (+12.6%), France (+12.5%), and Italy (+2.5%).
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The ACEA has sounded the alarm, calling for urgent relief measures to counter the ongoing decline in EV sales. They warned that without swift action from EU institutions, the new CO2 emission targets set to take effect in 2025 could place even more strain on the auto industry.
Automakers remain committed to the transition towards greener vehicles, investing heavily in electrification and zero-emission technology. The ACEA also urged EU lawmakers to accelerate the review of CO2 regulations for light and heavy-duty vehicles, originally scheduled for 2026 and 2027, to help stabilize the market before the new emission rules take effect.