The European battery electric vehicle (BEV) market is facing challenges, with a notable decrease in demand, according to findings from JATO Dynamics.
JATO Dynamics’ data for 28 European markets shows that while overall car registrations increased by 2% in July compared to the previous year, the market share for BEVs fell from 14.6% to 13.5%.
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New electric cars registrations this July were 6% lower than a year ago.
JATO Dynamics global analyst Felipe Munoz stated: “The lack of clarity around the incentives for – and future of – EVs continues to present a barrier to consumers considering an EV. These factors, alongside the low residual value of EVs contributed to the decline seen in July.”
This decline is compared against a surge in SUV registrations, which now account for 54% of total vehicle registrations, marking a new record for the segment.
The SUV segment’s growth was driven by key players including Volkswagen Group, Hyundai-Kia, and Stellantis, with compact and small models seeing the most significant increases.
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By GlobalDataDespite the overall rise in SUV popularity, midsize SUVs experienced a decrease in demand.
The drop in EV registrations is particularly striking given the previous momentum of electric cars. BMW led the BEV ranking in July with a 35% year-on-year increase, outperforming Tesla, which saw a 16% decline.
Munoz said: “Consumers in Europe now have access to more choice than ever before, and SUVs are a more comfortable and desirable option for many. This alongside the increasing availability of affordable models is helping consumers to make the switch from traditional segments to SUVs.”
The Dacia Sandero emerged as the most popular car in July 2024, with registrations up by 34%. The top ten best-performing cars included a mix of five SUVs and five hatchbacks.
However, several models, including the Tesla Model Y and the Ford Puma, experienced declines.
The Volvo EX30 was the second-most popular EV for the month, followed by strong showings from MG, Fiat, BMW, Renault, and Lexus with their respective models.
