Electric car sales pick up speed in EU despite pandemic

Paris – Demand for electric vehicles soared in the European Union (EU) last year as buyers took advantage of government subsidies for clean cars aimed at helping manufacturers weather the unprecedented hit from the Covid-19 pandemic.

This is according to the European Automobile Manufacturers Association (ACEA), which said yesterday about 538 772 fully electric cars were sold across the bloc, up 117% from 2019.

The sales of plug-in hybrids more than tripled to 507 059 from 139 954. Overall, sales of alternatively-powered cars – including fuels like ethanol or natural gas – made up one-fourth (24.5%) of the market last year, a figure that climbed to 34% for the fourth quarter alone.

“There was a volume effect and prices fell,” said Eric Esperance, an analyst at the Roland Berger consulting firm.

“Once you’ve shifted manufacturing lines to electric, your goal is to sell as many vehicles as possible.”

He added that starting in 2023, prices were going to come into line with petrol models “and subsidies would no longer be necessary”.

Renault’s Zoe hatchback took pole position thanks to strong sales in France and Germany, in particular, with nearly 100 000 sold last year on 23 key European markets, according to industry analysis group Jato Dynamics.

Tesla’s Model 3 came in second with about 86 000 sold, while Volkswagen’s ID3 took third place with nearly 56 000, despite launching only last year.

Jato expects the ID3 to surpass both rivals this year as VW also rolls out an electric SUV dubbed the ID4, as well as an ID5 coupe.

Petrol and diesel car sales plunged by contrast as recessions prompted by coronavirus lockdowns and travel restrictions compounded declines prompted by stricter European pollution limits.

Carmakers are shifting en masse to electric and hybrid models in order to bring average fleet emissions under the EU limit of 95g of carbon dioxide per kilometre, or face heavy penalties.

Diesel sales continued to slump, falling 32% over the year to 2.8 million, while petrol-powered cars fared even worse, down 37% to 4.7 million.

The total European automotive market contracted by nearly 24% last year.

But the ACEA said on Wednesday that it expected vehicle sales to rebound 10% this year as the pandemic is brought under control, with electric vehicles leading the way.