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In Europe, a “return to gasoline” is progressing, According to a new article on Yahoo Finance This article highlighted that Volkswagen’s EV sales are the canary in the coal mine.
Volkswagen’s electric car sales drop by nearly 25% in EuropeThe report states that as interest in battery-powered models wanes, there is a marked return to gasoline-powered vehicles.
The report notes that the economic downturn observed in the first quarter of this year was due to rising inflation and rising energy costs, which dampened consumer enthusiasm for electric vehicles. Volkswagen, which also owns brands such as Audi, Skoda and Porsche, saw global sales of electric cars fall by 3% to a total of 136,400 units. In contrast, sales of conventional internal combustion engine vehicles increased by 4% to nearly 2 million units.
The report notes that demand for electric cars is falling as European governments cut subsidies and ease ambitious targets to phase out petrol and diesel cars. ing.
In the UK, Chancellor Rishi Sunak last year extended a ban on new petrol and diesel sales from 2030 to 2035 and removed incentives for buying new electric cars. Volkswagen has a strong presence in the UK market with models such as the Audi e-tron and Volkswagen ID, but demand for petrol cars is growing faster than electric cars.
In the EU, discussions continue to amend the ban on fossil fuel vehicles and allow the use of synthetic fuels. The end of EV subsidies in Germany, combined with the suspension of emissions targets by the EU, has had a noticeable impact on Volkswagen’s sales. Furthermore, competition is intensifying as subsidized and inexpensive Chinese-made EVs enter the market.
Despite a significant drop in EV sales in Europe, Volkswagen reported a 91% increase in China. Other manufacturers such as BMW and Stellantis are also adjusting their electric vehicle strategies as consumer interest fluctuates.
Hildegard Woltmann, Member of the Volkswagen Board of Management, said: “Our diverse product portfolio allows us to compensate for fluctuations in demand in some segments (as is currently the case with fully electric vehicles) in others. It gives us the flexibility we need.”
recollection we have written Regarding the influx of EV competition from China. Earlier this month, Mercedes-Benz boss Ola Källenius called on the EU to reduce tariffs on EVs imported from China. The call comes as the European Commission considers whether to raise import duties as Europe continues to grapple with subsidies from China.
Källenius said increased competition “will help European automakers produce better cars in the long run.” He said the government’s protectionism was “moving in the wrong direction.”
Källenius’ comments are a free market slap in the face of the EU, which claims China is “distorting” the EV market.recollection In September 2023 we wrote: The EU has announced that it has launched an investigation into China’s EV subsidies.
At the time, we noted that European Commission President Ursula von der Leyen had made an exception due to the fact that “the world market is full of cheap Chinese cars.”
Posted by: Zerohedge.com
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