Sep 01, 2020 (IAM Newswire via COMTEX) -- Electric vehicle sales accounted for 18 percent of the total sales in Europe in July. But, despite its skyrocketing stock price, Tesla /zigman2/quotes/203558040/composite TSLA +2.05% seems to be losing ground in Europe. Its sales cratered by 76 percent to just 1050 sales in July. Meanwhile, Renault SA /zigman2/quotes/202090946/composite RNLSY -1.10% dominated Europe's July EV sales party.
Europe- Haven for EVs
COVID-19 might have smashed global auto sales during the first half of the year, but its impact was far weaker on EVs and hybrids. What’s astonishing is that in Europe, EV registrations increased 131 percent year on year in July. Total EV registrations in Europe jumped from 23,400 sales in July 2019 to 53,200. The number of existing models increased from 28 models in 2019 to 38. Plug-in hybrid sales also skyrocketed an astonishing 365 percent from last July's figures.
Among the best-sellers are Peugeot's /zigman2/quotes/207803404/composite PUGOY +0.40% 208, the Mini Electric, the MG ZS, the Porsche Automobile Holding /zigman2/quotes/208338327/composite POAHY -4.12% Taycan and the Skoda Citigo. They were led by the Renault Zoe which was by far the highest-selling EV in Europe in July, with 146 percent year-on-year growth. Tesla’s didn’t make it to the top 10. Renault sold 9280 Zoes in July, followed by the Hyundai Kona (4405), the Volkswagen /zigman2/quotes/204431732/composite VWAGY -2.34% e-Golf (4094) and Kia's e-Niro.
It's just the beginning
This year, Audi will launch its e-tron GT. Volkswagen has already launched its long-awaited ID.3. It even came out with sketches of next year's ID.4 SUV. Tata Motors-owned /zigman2/quotes/209145303/composite TTM +5.09% Jaguar has teased with a relative of I-Pace which was awarded with The World Car of the Year in 2019. Porsche will have two more EVs in store over the next two years. The race is just getting started.
Lower prices and governmental incentives
Tesla can no longer rejoice in the fact that it does not have a competitor. Jato Dynamics global automotive analyst Felipe Munoz, finds that EV demand increased to increased number of choices as well as more affordable prices due to higher competition. Moreover, European governments are also providing great support in the form of incentives: EUR12,000 in France and more than EUR9000 in Germany.
What’s even more astounding is that at least four out of every 10 new vehicles sold in Europe in July were SUVs. Their sales increased to 530,800. Actually, this is the only segment that has seen growth and during the crisis. If we add the fact that SUVs come at a higher price change, this is a remarkable trend. The SUV fight has been incredibly tight with only a few hundred units separating Renault Captur in first place (and fifth overall), the Peugeot 2008 in second, followed by the Volkswagen T-Roc. Volkswagen has three models, namely the Golf, the T-Roc and the Tiguan in the top 10 sellers, whille Renault and Peugeot had two, Clio and Captur, and 208 and 2008, respectively.
The entire car industry bounced back strongly in July, with the 27 national markets in Jato's data registering 1,278,521 sales, which is down just four percent compared to 2019. However, there are still huge uncertainties regarding when will the pandemic finally be behind us.
Since January, volumes have fallen 35 percent to 6.37 million cars. Moreover, only nine of the 27 countries showing growth in July, such as United Kingdom, France and Denmark. Yet, important markets fell. Italy, Portugal and Austria dropped by at least 10 percent. More importantly, Germany saw a five percent drop, but at least its Volkswagen Golf regained its traditional place as the biggest-selling machine in Europe with 31,169 sales in July. Afterall, this model has been a synonym for success since 1974. By the looks of it, EVs merely slow down, but the race is heating up with plenty of new models scheduled within the next 12 months.
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