In the first six months of 2024, the performance of the electric car market in Europe was slightly weak, with an increase of only 1%, far below the global average growth rate of 20%.
According to the news from Zhī tōng finance and economics APP, the performance of the electric car market in Europe in the first half of 2024 was slightly weak, with growth of only 1% compared to other regions of the world, far below the global average growth rate of 20%, as well as China's amazing 30% growth rate. This data highlights the relative lag of Europe in the field of electric cars.
According to Charles Lester, chief electric vehicle data analyst at Rho Motion, although the global electric vehicle market achieved an overall growth rate of 20%, there were significant differences in the growth trend in different regions. His view is consistent with the research results of the International Energy Agency, namely that the sales of electric vehicles are mainly concentrated in a few major markets.
The stagnation of the European market growth was mainly affected by the 9% contraction of the German market, which was related to the gradual cancellation of subsidies for plug-in hybrid electric vehicles (PHEVs) and electric vehicles after the country's climate and transformation fund decisions. This policy change led to a decline in the sales share of electric vehicles in Germany from 30% in 2022 to 25% in 2023. Although France and the UK achieved growth rates of 8% and 13%, respectively, these growth rates were not enough to fully compensate for the loss of the German market.
Compared with the Chinese market, the penetration rate of electric vehicles in Europe is relatively low. In China, one in every three new registrations is an electric vehicle, while in Europe, this ratio drops to one-fifth. The United States is even lower, accounting for only one-tenth. These three countries together account for two-thirds of the global electric vehicle total sales.
Within Europe, Norway ranked first with a 95% share of electric vehicle sales, mainly due to the government's preferential policies, such as exemption from weight tax, which not only considers the weight of the car, but also the emissions of carbon and nitrogen oxides. Sweden followed closely with a 60% share of sales, while the Netherlands ranked third with a 30% share. It is worth mentioning that although Belgium accounts for only 5% of the total sales in Europe, the popularity of electric vehicles has driven a 35% increase in sales in the first quarter of 2024.
In terms of the stock market, stocks related to electric cars generally performed well on Tuesday. Lucid Group (LCID.US) rose by 5%, Tesla (TSLA.US) rose by 5.24%, Xpeng (XPEV.US) rose by 5%, NIO (NIO.US) rose by 3.46%, and Rivian (RIVN.US) rose by 1.12%, showing that investors continue to have confidence in the electric vehicle industry.
It is reported that the National Energy Administration of China has issued the "Action Plan for High-quality Development of Distribution Network (2024-2027)", proposing to establish and improve the coordination mechanism between distribution network and electric vehicle charging facilities, which is a major bullish news for the electric vehicle industry. Secondly, the Vietnamese government plans to provide electricity price subsidies for electric vehicle charging stations to reduce the use cost and promote the popularization of electric vehicles, indicating that the support for the electric vehicle industry from the government is increasing. These factors may jointly drive the general good performance of stocks related to electric vehicles.