Europe leaps ahead of China in EV Sales

When I assessed the likely impact of the current crisis on EV growth back in April, I anticipated Europe would benefit most. I predicted the USA would be negatively impacted — with the possible exception of California — whereas China would remain at pre-crisis levels, i.e. flat vs. 2018 and 2019.

I expected Europe to introduce incentives aimed at bolstering the automotive industry, with a focus on clean energy. Europe did just that and it had a significant impact on sales. Plug-in EV (battery EVs and plug-in hybrids) sales reached 7.2% of total EU car sales in Q2 2020, three times the penetration achieved for the same period last year. In an otherwise depressed market, France and Germany, the two largest vehicles markets in Europe, saw battery EV (BEV) sales jump respectively 82% and 21% y.o.y. for the period.

EV-focused incentives markedly increased in Europe

Incentives are impactful but they will not last. In France, private buyers of vehicles emitting less than 20 gr CO2/km and retailing for less than 45,000€ (~US$53k incl. tax) benefit from a 6,000€ incentive — it was 5,000€ before June 1. The bonus drops to 3,000€ in the 45,000–60,000€ price bracket. If this new clean vehicle replaces a vehicle first registered before 1997, then the 6,000€ becomes 11,000€!