Sat. May 25th, 2024

Welp, Looks Like Volkswagen’s EV Sales Took a 24% Dive in Q1

Emily Hudson By Emily Hudson May24,2024 #finance

When the subsidies run out, EV sales show their true colors.

Volkswagen Leads the Way

Please note Electric Car Sales Plunge as Europe Returns to Petrol.

Sales of Volkswagen electric cars have plunged by almost a quarter in Europe as demand for battery-powered vehicles stalls and buyers return to petrol.

Electric vehicle (EV) sales fell by 24pc in the first three months of the year as high inflation and rising energy prices dampened demand. The drop-off in EV demand comes as politicians in the region rollback subsidies and reconsider ambitious targets to dump petrol and diesel cars.

In September, Rishi Sunak, the Prime Minister, pushed back a deadline to block new petrol and diesel sales in the UK from 2030 to 2035. Incentives for drivers buying new EVs were scrapped in 2022.

Data suggests that demand for petrol cars is rising faster than for electric models in Britain.

Demand Reverts to Petrol

The Telegraph reports Demand for Electric Cars Slows Sharply as Customers Revert to Petrol.

Electric car demand has slowed sharply in a sign that drivers are turning back to petrol.

The market share of battery electric vehicles (EVs) declined last month, the Society of Motor Manufacturers and Traders (SMMT) said.

EV registrations rose only 3.8pc from a year earlier, compared with a 10pc advance in the overall car market.  What gains EVs did achieve in March were driven entirely by fleet and business purchases, with sales to ordinary drivers dropping, the SMMT said.

The SMMT’s figures came as Carlos Tavares, the head of carmaking giant Stellantis, whose brands include Vauxhall, Peugeot and Fiat, warned that electric vehicles are unlikely to ever be universally popular among drivers.

Mr Tavares said the 500kg of raw materials currently required to produce an EV battery pack isn’t sustainable and said a technological breakthrough was required to halve the weight of battery packs over the next decade.

SMMT called for VAT on new EV sales to be halved, changes to plans to introduce road tax for the vehicles and a reduction in taxes on public charging points to bring them into line with home charging.

At least 22pc of new cars sold by a manufacturer this year must be zero emission under government net zero rules. The threshold will rise annually to 100pc by 2035.

Carmakers face fines for failing to hit the targets, levied at £15,000 per vehicle above the threshold.

There is a near zero percent chance 22 percent of cars will be zero emission in 2024 without massive subsidies and perhaps even with massive subsidies.

Green Wave in Reverse

In the US, the Green Wave in Reverse, Biden Rolls Back EV Mandates, But Not Enough

Under EPA rules, EVs will need to be 30-40% of the market by 2030, down from the proposed 60%.

In the Zero Chance Category

Most popular gas-powered pickups emit about 430 grams of CO2 per mile. Under EPA’s final rule, trucks will have to average 184 g/mile in 2027, 128 g/mile in 2030 and 90 g/mile by 2032. Ergo, the companies will effectively have to produce one to two electric trucks for every gas-powered one in 2027. The ratio will be closer to four to one by 2032.

Ford to “Re-Time” New EV Production, Expand Hybrid Production

On April 4, I noted Ford to “Re-Time” New EV Production, Expand Hybrid Production

Ford announces a two-year delay, “retiming” until 2027, on new EV models scheduled for 2025. In addition. Ford will focus on a full line of hybrids.

Tesla’s Deliveries Drop for First Time Since 2020

Also note Tesla’s Deliveries Drop for First Time Since 2020, It’s Demand Not Supply

Tesla’s (TSLA) quarterly deliveries in the first quarter of 2024, are down 8.5% from a year earlier. It’s the first quarterly decline since 2020.

Only 35 Class 8 Truck EV Charging Stations

One of the things holding up use of electric semis is expense. A second is the number of charging stations.

Image from the US Department of Energy, annotations in blue by Mish.

Please note there are 4 Million Semis on the Road, Only 35 Class 8 Truck EV Charging Stations

For the 5th year, Musk is hyping 50,000 electric semis without having a factory to produce them. And now Tesla auto sales are falling.

One of two things is about to happen. EV targets will plunge in Europe and the US, or there will be some hugely missed targets.

My guess is both.

Emily Hudson

By Emily Hudson

Emily is a talented author who has published several bestselling novels in the mystery genre. With a knack for creating gripping plotlines and intriguing characters, Emily's works have captivated readers worldwide.

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2 thoughts on “Welp, Looks Like Volkswagen’s EV Sales Took a 24% Dive in Q1”
  1. I believe that the decrease in EV sales is a clear indication that without subsidies, the true demand for electric cars is exposed. It’s concerning to see buyers shifting back to petrol vehicles, emphasizing the need for consistent incentives and support for the EV market to encourage sustainable transportation choices.

  2. Is the drop in EV sales solely due to the subsidies running out, or are there other factors influencing this shift back to petrol cars?

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