European Car Sales Growth to Slow in 2024, Electric Vehicle Share to Rise – ACEA
BRUSSELS – According to the European Automobile Manufacturers Association (ACEA), new car sales in the European Union are expected to experience a slowdown in 2024, with a projected growth of only 2.5%. This comes in stark contrast to the 12% increase witnessed in 2023. However, the share of electric vehicles (EVs) is set to rise significantly.
ACEA’s forecast for 2023 reflects an upgrade from their previous estimate of 5% growth made in January. Nonetheless, new car registrations, reaching 10.4 million euros, are projected to remain nearly 20% lower than the record levels seen in 2019.
The association has also predicted that the share of battery electric vehicles in the market will increase from the current range of 14-14.5% to approximately 20% by 2024.
ACEA unveiled these forecasts while presenting their policy recommendations for the next five-year period (2024-2029) to EU institutions following the European Parliament election.
Key recommendations include the implementation of a comprehensive industrial strategy encompassing all stages of green and digital supply chains, as well as a reduction in the pace of new regulations.
ACEA President Luca de Meo, who also serves as the chief executive of Renault (RENA.PA), expressed his concern about the numerous EU regulations that the automotive sector must navigate. De Meo highlighted the challenge of having eight to nine regulations imposed on the industry each year until 2030, some of which may even conflict with one another.
De Meo additionally stressed the urgency of increasing the installation rate of charging stations by a factor of seven to 10. He remarked that the market would soon witness a growing launch of smaller EV models, such as the Volkswagen Polo or Renault Clio, which offer a range of 400-500 kilometers at a significantly lower price point. This development is expected to spur greater demand.
The ACEA forecasts and policy recommendations indicate the evolving landscape of the European car market. The anticipated growth in electric vehicle sales presents a promising progression towards sustainable mobility. However, the industry must navigate several challenges, such as regulatory complexities and the need for an expanded charging infrastructure to support widespread EV adoption.
As the automotive sector enters a new era of technological transformation and environmental consciousness, stakeholders will need to collaborate to overcome these hurdles and achieve the vision of a greener, more sustainable future for European mobility.
Overall, while the growth in new car sales may be slower in 2024, the rise in the share of electric vehicles signals a significant shift towards a more sustainable automotive industry in the European Union.
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