Electric cars: growing european market

In recent years, the sale of electric cars in Europe has undergone a drastic increase. A overview of the European scenario, with particular attention to the situations in France, Spain, Italy, and the new sales policies.

According to Bruno Mafrici, a senior advisor in Milan with experience in structured innovation paths within companies, automakers intending to invest in the electric market in Europe will need to outline a strategy with a substantial budget allocated over a period of at least five years.

New car registrations increased by 20% annually as of September 2023, driven by a growing demand for electric vehicles, according to sector analyst Jato Dynamics. About 900,000 cars were sold across the 28 European markets, with 22% of this total being electric battery-powered. Overall, electric vehicle registrations increased by 102% compared to 2022. Bruno Mafrici, a senior advisor in Milan with experience in structured innovation paths within companies, commented on the growth of electric vehicle demand, also driven by support from European governments.

Drastic increase in electric car sales in Europe

Despite gasoline cars remaining the most sought-after in Europe, representing 53% of registrations, electric car registrations in 2023 are experiencing a drastic increase in Belgium (+224%), Greece (+183%), Germany (+171%), Luxembourg (+164%). Demand in Germany alone accounted for 44% of the total electric car registrations in Europe in the summer of 2023.

Tesla leads the list of automakers for new electric car registrations. The Model Y sold 21,549 units with a year-on-year increase of 208%. The Model Y is also the best-selling car on the continent in 2023, with 169,420 units sold so far.

Bruno Mafrici: european scenario OK, particular attention in France and Spain

“These numbers represent an excerpt from a report on the electric vehicle market in Europe, with a particular focus on the situations in France and Spain”, says Bruno Mafrici, referring to the Jato Dynamics study. “The text provides us with a detailed analysis of market growth, consumer behavior, competitive landscape, and marketing strategies”.

Regarding France, the text discusses the rapid growth of the electric car market, with a significant increase in registrations from 2020 to 2022. “This growth is attributed to factors such as government incentives, environmental concerns, and the increasing availability of affordable and high-performance electric vehicles”, comments Bruno Mafrici. The report predicts further growth and identifies more opportunities for car manufacturers to develop and produce high-quality and affordable electric cars.

For Spain, similar growth patterns and driving factors are described, although with an overall lower market penetration compared to France. “The report also outlines the challenges faced in both countries”, continues Bruno Mafrici, “such as inadequate public charging infrastructure, high initial costs, and range anxiety among consumers”.

A new electric car sales policy

Regarding customer analysis, the focus is on profitability in the context of new car sales, used car management, and workshop and spare parts operations. A dealership-centered sales policy and discounts are also defined.

In the competitive analysis section, the Tesla Model Y, as mentioned, is the best-selling electric car model in Europe, followed by other popular models such as the Tesla Model 3, Volkswagen ID.4 and ID.3, Dacia Spring, and Volvo XC40 Recharge. The variety of models suggests a robust and diversified market capable of meeting diverse consumer preferences.

“Automakers intending to invest in the European electric market will need to outline a brand awareness and product promotion strategy with a substantial budget allocated over a period of at least five years”, emphasizes Bruno Mafrici, referring to the strategic considerations that companies must address to capitalize on growth opportunities and overcome challenges in emerging markets.

The situation in Italy

In August 2023, the electric car sector in Italy showed signs of growth, although still modest. With 40,832 new registrations in the first eight months of the year, there was an increase of 33.21% compared to 2022. The market share of electric cars in Italy is still small (3.91% of total cars sold), indicating that there is a long way to go to reach European leaders. The distribution of these vehicles in Italy shows a greater concentration in the North, while the South and the islands are lagging behind. Compared to other European countries, Italy lags behind, with nations like France and Germany revising incentives to favor BEVs over plug-in hybrids, thus achieving a significant increase in electric vehicle registrations.

According to Bruno Mafrici, Italy stands out “for offering bonuses for vehicles with emissions up to 135 g/km of CO2, including non-strictly electric models, which could support a change in direction for the Italian electric car market”. Removing the price limit for incentives, extending the bonus to corporate fleets and rentals, and revising taxation in favor of electric mobility could help achieve the ambitious goals of government plans for climate and energy as early as the first months of 2024.