More Than A Fifth of New EU Car Registrations Are Now Fully Electric

[Hamartia Antidote]

More Than A Fifth of New EU Car Registrations Are Now Fully Electric

Battery electric vehicles (BEV) accounted for a record 21% of all new car registrations in the European Union (EU) in August, the European Automobile Manufacturers' Association (ACEA) said Wednesday.

www.investopedia.com

Battery electric vehicles (BEV) accounted for a record 21% of all new car registrations in the European Union (EU) in August, the European Automobile Manufacturers' Association said Wednesday, presenting a big opportunity for EV makers such as Tesla (TSLA) and its European counterparts.1

KEY TAKEAWAYS​

• A record 21% of all new car registrations in the EU in August were those of battery electric vehicles (BEV).
• The growing market penetration of EVs could present opportunities for both legacy and electric carmakers across the continent.
• Few have benefitted more than Tesla, with its Model Y ranking as the best-selling EV in Europe for the eighth month in a row in June.

Expanding EV Adoption in Europe​

It's the first time the BEV share has exceeded 20%, and is almost double the 11.6% share at the same time last year. Since the start of the year, BEV registrations across the EU more than doubled to 165,165 units, with all countries except for Malta recording double or triple-digit percentage gains.2


Belgium recorded the most impressive gains with a stunning 224.5% increase year-to-date. Germany—the EU's biggest electric car market by volume—wasn't far behind with a 170.7% gain. In total, almost a million new battery EVs have been registered since the start of the year.


Battery EVs' market share surpassed that of diesel cars for the second time this year, and was the third most-popular choice overall for car buyers across the EU.


Another 23.9% of sales were those of hybrid electric vehicles (HEVs), which combine an electric motor with a standard gas-powered engine.3 Registrations of hybrids grew an impressive 29% last month alone, driven by strong growth in Germany, France, and Spain, three of the EU's biggest markets.

What This Could Mean for Car Companies​

The accelerating market penetration of EVs could present opportunities for carmakers across the continent. Traditional European automakers like Mercedes-Benz (MBGYY), Volkswagen (VWAPY), BMW (BMWYY), Renault (RNLSY), Volvo (VLVLY), and Stellantis (STLA)-owned brands Citroen, Opel, Alfa Romeo, and Fiat, have launched EV models of their own in recent years.

However, few have benefitted more from this trend than U.S. EV maker Tesla, with its Model Y crossover ranking Europe's best-selling EV for the eighth month in a row in June, followed by its Model 3 sedan. June sales of the Model Y were more than triple that of Volkswagen's ID.4, the best-selling EV made by a European car company

Tesla could also benefit from planned regulatory changes introduced by EU lawmakers. Last week, EU officials launched a probe into state subsidies of Chinese EV makers such as Nio (NIO), BYD (BYDDY), and XPeng (XPEV), in an effort to protect domestic automakers from rising competition.5 This could lead to tariffs on Chinese automakers, allowing Tesla to capture an even greater share of Europe's EV market in the quarters to come.