Producers advocate for loosening constraints on CO2 emissions.
Due to dismal figures in the EU car market, automakers have asked for leniency on CO2 emission limits. The automakers' association Acea pleaded for "immediate" aid on August 31st. The number of new car registrations in the EU fell by 18.3% compared to the previous year in August. Several manufacturers also worry about the implications of a trade dispute over Chinese electric vehicles, which Chinese trade minister Wang Wentao attempted to resolve in Brussels talks.
As per the automakers' association, the market for electric vehicles plummeted by 43.9% last month. Surprisingly, the number of new electric vehicle registrations in August 2023 hit an all-time high, primarily due to sky-high sales in Germany prior to the expiration of the electric vehicle sales incentive. Since then, this 21% share of total sales has not been surpassed.
Consequently, electric vehicle sales in Germany dropped drastically by 68.8% compared to the previous year. The market also declined by 33.1% in France. The share of electric vehicles in new registrations was 14.4% across the EU in August, according to Acea. In July, this percentage was 12.1%, and over the first eight months of the year, it was 12.6%.
However, the overall car market showed steady growth over the first eight months of the year, rising by 1.4% to a total of 7.2 million new registrations. Registrations increased by 4.5% in Spain and 3.8% in Italy, respectively, whereas they decreased slightly by 0.5% in France and 0.3% in Germany.
In a formal appeal to Brussels, the automakers' association requested "urgent action to be taken before the new CO2 targets for passenger cars and commercial vehicles take effect in 2025". The EU Commission should expedite the review of the CO2 limit regulation, which is currently slated for 2026.
Given the ongoing challenges in the EU car market, with electric vehicle sales particularly affected, the automakers urgently need support to meet the stringent CO2 emission limits imposed on the EU car market. Despite the general growth in new car registrations in the EU, the EU car market for conventional vehicles like ICE cars continues to face significant headwinds.
