Clouds are gathering around the future of e-cars. Having managed to gain a foothold in the market in record time – almost one in five newly registered vehicles And in France in April – electric cars are now entering a more sensitive phase in their expected conquest of the automotive world. The challenges they face They spawn and their opponents step up to the plate. Their rise even seems less inevitable Than it seemed just a few months ago.
Although sales did not collapse, the market share of battery-powered cars in Europe fell by 2.5 points compared to the first quarter of 2023. This is mainly due to significant cuts in public subsidies for battery-powered cars, which are the first cars to be targeted. Through fiscal rebalancing measures, especially in Germany, where the environmental bonus suddenly disappeared in December 2023.
The new five-year contract, signed on Monday 6 May, between the car industry and the government to produce two million electric cars in France by 2030 – up from 500,000 today – aims to improve the outlook and reliability of electric cars. However, other signs confirm that electric cars have lost some of their luster.
For the major German brands, which have been wholeheartedly engaged in the electrification of their product range, this transition has not been smooth at all. Mercedes-Benz reported a 24.6% decline in net income and a 4.4% drop in sales in the first quarter, two rare underperformances attributed primarily to an 8% decline in sales of electric models. As for the Volkswagen Group, it saw its net profits decline by similar percentages (by a high of 21.6% in the first quarter), mainly due to weak sales of its battery-powered car range, especially in China, its largest market.
Like Tesla, which is also facing a decline in demand and is about to cut more than 10% of its workforce, equipment manufacturers are suffering. Valeo saw its sales decline 1% in the first quarter due to “disappointing electric vehicle volumes.” A study by AlixPartners published in late April revealed that purchasing intentions among individuals are stagnating…except in China.
Debate in the French Parliament
This sudden backlash has begun to cast doubt on the sustainability of Europe’s roadmap, which sets 2035 as the target date for the end of sales of new internal combustion engine cars. this The deadline is increasingly facing public opposition from some automakers, whose Chinese rivals do not have good experience with combustion engines.
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