Only 17% of electric cars sold in Europe are small

Well-known European environmental organization Transport & Environment (T&E) has published an analysis that explains one of the reasons it believes carmakers are failing to sell the affordable electric models they repeatedly advertise. The reason is none other than the priority they have given to large and expensive electric cars, which leaves them with a larger profit margin and reaches the market in much larger quantities than small or, if you like, compact cars.

The study specifically indicates that only 17% of electric cars sold in Europe belong to the B segment (no longer than 4.25 meters), smaller and more affordable than 37% of cars equipped with a combustion engine. In turn, the supply of large and expensive electric models outnumbers the supply of small cars by 3 to 2.

T&E does not hesitate to assert that car brands are “slowing down” the adoption of affordable electric vehicles by prioritizing sales of large and expensive models. According to their research, between 2018 and 2023, only 40 fully electric models were sold in the compact segments (A and B), while 66 correspond to the higher categories (segments D and E).

Ana Krajinska, vehicle emissions manager at the unit, believes that “manufacturers’ disproportionate focus on large SUVs and models premium “That means we have very few mass-market cars and very high prices.”

28% of electric sales in Europe correspond to the D segment, in which new combustion vehicles weigh only 13%, according to 2023 sales data from consulting firm Dataforce. Jato, another relevant data provider for the sector, finds that the average price of a 100% electric car on the old continent has increased by 39% (+€18,000) since 2015, while it has fallen by 53% in China.

Only 42,000 of the €25,000 models that manufacturers have planned to launch are expected to hit the European market this year, Transport & Environment continues, this time based on production data from GlobalData. However, it concludes that the lack of affordable models has not prevented the EU electricity market share from increasing by 2.5 percentage points to 14.6% in 2023. In Spain, this percentage closed last year at 5.56%.

The main role of fleets

T&E claims that the European electric market could be 22% if the corporate car segment, which represents the majority of new car sales, leads the electrification. Currently, with a share of 14%, the business sector lags behind the private market, which is around 15%.

For this analysis, lobby The environmentalist is based on a scenario in which the corporate fleet market leads electrification, selling at least 50% more electric vehicles than the private channel. According to him, this goal has already been achieved in nine countries: Austria, Belgium, Czech Republic, Hungary, Greece, Luxembourg, Poland, Slovakia and Slovenia.

Taxes also play an important role in encouraging the adoption of electric vehicles. In Germany, according to T&E, automakers are opposing a company car tax reform that proposed increasing the tax burden on gasoline and diesel cars.

The study supports the setting of mandatory electrification targets for corporate fleets as an ideal tool to accelerate decarbonisation in Europe. Transport & Environment specifically asks the EU to set a target for the fleet to be 100% electric by 2030 at the latest. In this regard, the European Commission opened public consultations. greenery Company cars.

Anna Krainska summarizes the situation: “Corporate vehicles are ideal candidates for accelerated electrification. They are heavily subsidized through tax breaks and companies have the financial opportunity to invest in electric models. The EU should therefore introduce a law that covers a large part of the company car market and regulates the giants. Leasing and companies that have a large fleet of vehicles.”

Source: El Diario

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