Sales of electric cars in Europe continue to grow, but are slowing down. Such a trend, which has been observed for several months, according to analysts, can be explained by several reasons. reasons are not only economic.

Registrations of new 100% electric cars in Europe increased by 47% during the first nine months of 2023. However, manufacturers such as Tesla, Volkswagen and Mercedes have started to sound the warning signs. High interest rates and a market with so many advertised cars struggling to get to dealerships seem to be putting off customers at the moment.

Looking forward to a better future for electric cars?

According to analysts, the current economic situation plays an important role, but mainly due to the slowdown lack of models that meet the expectations of European customers.

Many fear that electric cars currently on sale will not meet safety and range requirements. At least they don’t live up to what they consider to be an “affordable” price.

There is general agreement that technology will make significant advances in the coming years, which can obviously be a drag on sales. Who wants to commit to buying a car worth several tens of thousands of euros, only to have it become obsolete in a year or two?

Manufacturers may focus on LOA or LDD financing solutions specifically to “free” customers from this “aging” limitation. but the prices are still very higheven under the infusion of state subsidies.

A delicate balance

Another problem arises. Due to the supply crisis and production slowdown that the major automotive groups have recently faced, the supply of electric cars has become scarcer. This has forced various brands to prioritize profitability over volume.

The problem is that since the beginning of 2023, we have witnessed the now famous price battle, in which Tesla and the Chinese manufacturers have gained ground thanks to attractive prices. European manufacturers, for their part, cannot ignore this phenomenon and must protect themselves by offering more affordable electric cars.

In short, this is a virtuous circle that is about to be launched and will drive the market from 2024 to 2027. Citroën ë-C3, Volkswagen ID.2, Renault Twingo E-Tech, Renault 5 E-Tech, electric Fiat Panda… They are waiting a lot.

Is the problem specific to Europe?

Reuters, however, describes a different situation around the world. According to research company Rho Motion, sales of electric cars worldwide are consolidating. In October, China set a new record, even though government subsidies end at the end of 2022, after 11 years of various types of aid.

The United States is responsible for a 78% year-to-date increase in electric vehicle sales. That’s mainly due to Tesla, but other brands that aren’t going through a rough patch are also starting to grow, to the point that Elon Musk’s firm fell below 50% market share in the third quarter.

Proof that Ford, General Motors and other manufacturers, including startups like Lucid or Rivian, are starting to make progress.

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