Sales increase for new cars

Sales increase for new cars

In Austria, over 21,000 cars were newly registered in April - an increase of 15 percent compared to April of the previous year. Last year Easter fell in April, but this year it fell in March. The development over the course of the year so far is therefore more meaningful: EU-wide new registrations in the period from January to April were seven percent higher than in the same period last year - but still 18 percent lower than in the first four months of 2019. Almost 113,000 new cars were registered from January to April 2019, in the same period this year there were only 85,000 - a decrease of 25 percent.

Overall, Axel Preiss, Head of Advanced Manufacturing & Mobility at EY, still assesses the situation in the European new car market as tense: "Even if there is a short-term relief, there has been little change in the general conditions. Demand is still low and, compared to times before the Covid-19 pandemic, there are a good 2.5 million new cars sold across the EU this year. This is leading to considerable excess capacity for the car industry." Preiss sees the following reasons for the current situation: "The economy is still weak and there are hardly any signs of an upswing. Added to this are the geopolitical tensions, which have a negative impact on the investment climate - for both private individuals and companies. And the uncertainty surrounding the ramp-up of electromobility is also depressing the mood." Car manufacturers are trying to counteract the resulting reluctance to buy with sometimes significant discounts: "The recipe is well known - but the discounts in combination with the low volumes lead to further problems. Margins will continue to come under pressure, and a positive trend reversal is currently not in sight," says Preiss.

Overall, the number of newly registered electric cars rose by 15 percent, although declining sales figures were recorded in at least ten countries. In April, the market share of electric cars was roughly at the same level as the previous year: The share of electric cars in the overall market was 11.9 percent - after 11.8 percent in April 2023. The market share fell in 14 of the 28 EU countries. In Austria, the number of newly registered electric cars fell by almost five percent in April compared to the previous year. "What was supposed to be the time of ramp-up of e-mobility is turning out to be a renaissance for combustion engines. Electric cars are losing share in more and more markets. However, manufacturers had planned for continuous sales growth in this segment," says Preiss. Electric cars are still a niche product in most EU countries: in at least 15 EU countries, the electric market share was less than ten percent in April. The highest market share of electric cars was recorded in Denmark in April at 43 percent. Croatia had the lowest market share at 0.5 percent. In April 2024, Germany was in the middle of the EU with an electric market share of 12.2 percent, as was Austria with a share of 15 percent. 

The weak sales development for electric cars could become a problem for some suppliers, as new, stricter CO2 targets will apply to manufacturers in the EU in 2025 and billions in fines will be due if these targets are not met. "In order to stimulate the market, customer interest must be rekindled. This requires measures from the industry, but also from politics," says Preiss. The focus should be on new buyer groups in particular, as the first wave of innovation-oriented customers in metropolitan areas has now largely been addressed. The e-mobility offering for rural areas still needs to catch up given the still limited and inadequate charging infrastructure and the ongoing range concerns. EY expert Preiss: “For most people, buying an electric car is still accompanied by some concerns - there is still a lot of persuasion, investment and, last but not least, new, better and cheaper electric cars that are necessary.”