Source: Gasgoo
According to Automotive News, the European Automobile Manufacturers Association (ACEA) predicts that the market share of pure electric vehicles in the EU will grow by 43% next year, driven by a surge in new models.
Image source: Renault
Luca de Meo, Chairman of ACEA and CEO of Groupe Renault, said that although the overall EU automobile market will only grow slightly in 2024, the share of pure electric vehicles will increase from 14% in 2023 to 20%. Luca de Meo said more affordable pure electric vehicles will help increase the share of electric vehicles. “This will have a product effect. We are trying to apply electric vehicle powertrains to more mainstream and core market segments.”
Luca de Meo also mentioned upcoming small electric cars such as the Renault 5 and future cheap electric models from the Volkswagen Group. It is reported that these models will use smaller and cheaper batteries, which will help reduce prices and increase demand. For example, the Renault 5 is priced at about 25,000 euros, and the price of some electric vehicles owned by Citroën and Renault may be less than 20,000 euros in the next two years.
ACEA Director General Sigrid de Vries said that the overall market will grow by about 12% this year, with total sales of about 10.4 million vehicles, 20% lower than pre-epidemic levels. In January this year, ACEA predicted that new car sales this year would increase by 5% year-on-year. Sigrid de Vries said that sales growth in 2024 will be approximately 2.5%, with the total volume expected to reach 10.7 million vehicles.
Growth in electric car sales has slowed due to the removal of subsidies in countries such as Germany, consumers’ reluctance to pay high prices, and the continued slow and uneven development of charging infrastructure. This has left automakers facing some uncertainty about their electrification progress. For example, Stellantis CEO Carlos Tavares said recently that Stellantis could change its strategy “if politics and public opinion favors a reduction in the number of electric cars.”
De Meo said the European auto industry remains committed to achieving zero emissions targets, mainly through pure electric vehicles. However, De Meo also noted that there may be a place for hydrogen fuel cells and synthetic fuel powertrains in the future.
