Government Incentives Drive Rebound in September European BEV Sales

A shoring up of government incentives in a key European market spurs a rebound of demand for battery-electric vehicles with registrations up 14% in September.

Data compiled by Jato Dynamics from 28 European markets reveal a total of 212,197 new BEVs were registered last month compared to the same period in 2023.

However, despite the monthly uptick in registrations, year-to-date volumes fell by 3% compared to the corresponding period in 2023, with 1.43 million units registered so far in 2024.

Germany's coalition government agreed to tax reductions for commercial fleet operators who will be able to deduct up to 40% of the value of newly purchased electric and qualifying zero-emission vehicles from their tax bill in the year of their purchase, falling progressively to 6%.

Additionally, BEVs and zero-emission company cars that are worth €95,000 or less will now qualify for preferential tax treatment, up from €75,000 or less previously, according to the proposal that will now go to parliament.

The government estimates taxpayers will have to foot an average annual bill of about €465 million ($514 million) between 2024 and 2028 to support these measures.

Felipe Munoz, global analyst at JATO Dynamics, comments: “It’s hard to say for certain whether BEVs will continue along this positive trajectory but the monthly increase in registrations is welcome news, especially considering that consumers still have reservations about the adoption of electric cars.”

Overall, Jato’s study shows 1,119,320 new cars were registered in September. This is around 40,000 fewer than the amount registered in September 2023, or a 3% year-on-year drop.

Stellantis was largely responsible for the volume decrease in the overall market last month, posting a 25% decline in registrations compared to September 2023, a drop of almost 50,000 units.

The company recorded a fall in sales in 22 of the 28 European markets, most notably in Italy down -34% and France down -17%, its two main European markets. Stellantis brands that experienced a steep decline in sales last month include Fiat (-43%), Citroen (-41%) and Opel/Vauxhall (-24%).

Munoz adds: “Stellantis may see these results as an indicator that the time has come to refresh its offering and reposition its BEV lineup to ensure the downward trend doesn’t continue.”