E-car market recovers worldwide
While the German e-car market is still weakening, it is recovering globally and reached 10 million vehicles sold in 2024. China was able to confirm its dominance in terms of new registrations. Germany was overtaken by the UK in terms of the number of new registrations. This is shown in the new Sales Review by the consulting firm PwC, which analyzed new car registrations in 22 selected markets. In order to comply with the EU's stricterCO2 regulations, more electric cars will have to be sold in 2025. PwC therefore assumes that this will lead to an increase in new registrations in the EU and is also hoping for a mini-boom in Germany.
The key findings at a glance:
- The global e-car market is recovering and will break the 10 million BEV (battery electric vehicle) sales mark in 2024
- Exports of Chinese BEVs to Europe hardly decrease despite new punitive tariffs: In December, imports of 33,000 BEVs were even 8% higher than the previous year's figure
- China confirms its dominance in new e-car registrations, Germany weakens and is overtaken by the UK
- The slump in sales in Germany is also affecting the retail sector and requires new business models, especially with a higher proportion of BEVs with less maintenance
- Original equipment manufacturers (OEMs) must therefore develop modern and up-to-date sales models in addition to more innovative products and implement them across the board
Global market picks up speed
The growth of the global electric car market is picking up speed again despite weak sales figures in Europe. This is shown in the "Electric Vehicle Sales Review" by PwC Autofacts® and Strategy&, PwC's global strategy consultancy, which analyzes new registration figures in 22 selected markets worldwide. According to the review, more than 10 million BEVs (battery electric vehicles) were sold worldwide in 2024, an increase of 14% compared to the previous year.
China remains the undisputed biggest driver of the global electric ramp-up. A total of 6.7 million electric cars were sold across the country in 2024, which corresponds to an increase of 20 percent. In December 2024 alone, 890,000 BEVs were sold there - more than twice as many as in Germany in the entire year. However, you also have to consider the differences in size - after all, 17 times as many people live in China as in Germany.
The USA was in second place in 2024 with 1.2 million electric cars sold, which corresponds to an increase of 7.4 percent.
With 381,000 BEVs sold and a drop of 27% compared to the previous year, Germany falls back to fourth place and is overtaken by the UK for the first time on an annual basis.
The weakness in Germany is slowing down the momentum of the entire EU market. One of the reasons for the misery in Germany and Europe is that original equipment manufacturers (OEMs) are holding back sales. They will have to sell significantly more BEVs in 2025 in order to comply with stricterCO2 regulations. A BEV push in the first quarter and in 2025 as a whole is therefore likely.
According to the Austrian Transport Club, 44,622 BEVs were newly registered in Austria in 2024, which represents a drop of 6.3 percent compared to the previous year.
"We are at a decisive point"
"The European automotive industry is at a crucial point," said EU Commission President Ursula von der Leyen. "We are aware of the challenges it faces." She made this statement on the occasion of the dialog with the European automotive industry launched last Thursday, the results of which are to be included in the EU Transport Ministers' action plan and presented on 5 March. While some car manufacturers have already achieved theirCO2 fleet targets, such as BMW and the Stellantis Group, which includes Fiat, Peugeot and Opel, and refuse to soften them, other manufacturers, such as Renault and VW, are threatened with heavy fines for failing to meet their fleet targets.
You can find out more about the EU fleet targets in this article from September 30, 2024.
Despite the crisis: e-car market share could reach 24 percent
Management failure or market bypass instead of "bureaucracy monster"
German transformation researcher Maja Göpels sees the EU'sCO2 targets as an example of consistent "management by objectives" and explains to DerStandard: "The EU fleet values forCO2 emissions for cars, which are currently being massively attacked as a "bureaucracy monster". Yet it is the most technology-open approach of all: the average of all cars sold by a manufacturer must comply with a certainCO2 limit value. It doesn't matter how the company achieves this target. If it fails to meet the limit values, this has nothing to do with bureaucracy, but with management failure or the fact that the development process has bypassed the market. It's just a question of no longer falling below a certain emissions standard, and regulation has been introduced because voluntary commitments have not led to sufficient changes. We are an engineering republic - why don't we take ourselves seriously?"
China punitive tariffs have little effect
While European car manufacturers have to modernize their sales model, they are still under pressure on the global markets due to the threat of US tariffs and aggressive competitors from Asia. At the same time, the flow of Chinese BEVs to Europe is hardly decreasing despite the punitive tariffs introduced in October 2024. Overall, 451,000 BEVs were imported in 2024, 6% fewer than in the previous year. However, a look at December 2024 shows that this is only partly due to the punitive tariffs: in this month, imports of 33,000 BEVs were 8% higher than in the previous year.
Despite competition from Asia, German car manufacturers can hope for a mini boom in their home market in 2025. A look at the UK also offers hope. Similar to the end of 2024 in Germany and Europe, BEV sales there slumped in the fourth quarter of 2023 due to the imminent entry into force of the Zero Emission Vehicle Mandate. In 2024, however, BEV sales in the UK then skyrocketed, just as they had previously fallen. This pattern could be repeated in many European markets over the course of this year.
Market dependent on external factors
"It is currently clear that the global e-car market continues to be significantly dependent on external factors. For example, the strong BEV sales in China at the end of last year can also be explained by the fact that there was a kind of scrappage scheme for the purchase of e-cars there, which was actually due to expire at the end of 2024.
In the USA, on the other hand, sales figures rose after the election because many expected the new government to reduce incentives for electric vehicles and the corresponding infrastructure," says Jörn Neuhausen, Senior Director and Head of Electromobility at Strategy& Germany.
"In this complex and volatile environment, car manufacturers must focus all the more on developing competitive products. Updateability and flexibility are becoming increasingly important, both for the vehicle and for selected drive systems that need to be technologically updated faster than every four years. Although this requires increased investment, particularly in the structure of new platforms, it pays off in the long term."
Our pro.earth.conclusion:
We cannot avoid the transport revolution. In addition to many other measures such as the expansion of public transport, etc., we must switch to electric cars if we have no other means of transportation. Combustion engines have no future. We need much more research and development into sensible, affordable and climate-friendly transportation options and drive systems!
Record year for e-cars: around 42 million cars with electric drive worldwide
Left:
EU regulation settingCO2 emission standards for new passenger cars
