European car market and electromobility collapsed

European car market and electromobility collapsed

Last year, fewer new cars were registered in the EU than at any time in the last 30 years. Experts expect this trend to continue this year as the economy slows, people are short of cash and companies think twice before purchasing new cars.

ECONOMY FEBRUARY 6. 2023 09:00

Far fewer new cars were registered in the European Union last year than at any time in the last three decades. Some 9.3 million new cars were put into use in 2022, 4.6 per cent less than the previous record low set in 1992. The less-than-stellar 2022 figure was mainly due to supply bottlenecks; European car manufacturers complained primarily about the shortage of spare parts, including chips.

Big European states suffered significant losses. In Italy, the number of new cars sold fell by almost ten per cent, in France by just under eight per cent and in Spain by five per cent. Experts predict that this trend will continue in 2023 as economies are slowing down and a lot of people cannot afford new cars. Companies also think twice before purchasing a new vehicle. The market of electric cars experienced the biggest decline, particularly in Germany, where the reduction or withdrawal of state subsidies prevented many people from buying hybrid or electric cars in January, when 2.6 per cent fewer new cars were registered compared to the same month last year, the Federal Motor Vehicle Authority (KBA) in Flensburg reported. The drop is particularly extreme if we compare the January results with the December figures: 83 per cent fewer fully electric cars and 87 per cent fewer plug-in hybrids were registered.

“We will clearly feel the impact of decreasing subsidies and high electricity prices in 2023, especially in the lower price segment where public subsidies are very important,”

Peter Fuss, an automotive expert at EY, told the German press. Electric car owners also have to face difficulties because of the drastic rise in electricity prices. This year, electric cars will be even more expensive to maintain than last year, thanks to the crisis caused by European sanctions policy. In fact, owners may even be instructed not to charge their cars for a while, or at least to limit their use of the network. This has already happened once this winter, when the Federal Network Agency called for austerity. The charging of electric cars and the spread of electric heat pumps have put a significant strain on the electrical systems.

“If people continue to put a lot of new heat pumps and charging stations into use, we should expect overload problems and local power cuts in the network, if we don’t act,”

the agency’s chair, Klaus Muller said in a newspaper interview. To this end, a document of key importance has been issued to require the temporary power regulation of heat pumps and electric car charging stations during periods of high grid load.



car, electricity, europe, germany