The Effulgence Of Europe’s Electric Auto Production

The European Automobile Manufacturers Association (ACEA) reported that in 2018, 19.2 million motor vehicles were produced in the EU. This was 20% of the 98.1 million motor vehicles produced globally.

Within the spectrum of auto production there is an increasing focus on “Electrically-Chargeable Vehicles” (ECV’s). These include full battery electric vehicles (BEV) and plug-in hybrids (PHEV), both of which require appropriate recharging infrastructure.

BEV’s are fully powered by an electric motor, using electricity stored in an on-board battery that is charged by plugging into the electricity grid. PHEVs have an internal combustion engine that runs on petrol (gasoline) or diesel and a battery-powered electric motor.

The combustion engine in the PHEV supports the electric motor as required, and the battery is recharged by connecting to the vehicle’s grid. Their electricity is also generated internally from regenerative braking. The advantage is that they do not need recharging infrastructure.

Sales of ECV’s

The sales of such vehicles have grown in recent years, but it has only kept pace with the overall growth of all auto sales in Europe. Therefore, their market share, has remained stable; growing by just 0.9% between 2014 and 2018. Last year, ECVs accounted for just 1.5% of all passenger cars sold across the EU.

If one simply ran a straight-line extrapolation of this growth rate the market share of ECVs would be 3.9% by 2025 and 5.4% by 2030. However, Across Europe, sales of electric cars made up 3.1% of new registrations in the third quarter, according to ACEA data.

Germany overtook Norway for sales of ECV’s. This has placed Europe’s biggest auto market in position to become the regional leader on an annual basis for the first time.

Through November 2019, 57,533 new ECVs were registered in Germany, compared with 56,893 for Norway, according to statistics published by transportation agencies in both countries.

(Germany: Federal Motor Transport Authority, KBA, Norway: Norwegian Road Federation, OFV)

That seems to have sparked a new level of enthusiasm among the titans of what has been dubbed the “Deutschland Diesel District” who have started to gear up their production of such vehicles.

Norway has sold the most electric cars of any in Europe each year since at least 2010, when the Nissan Leaf, the first mass-market full-electric car first appeared. The numbers are a clear signal that the technology is gaining increased acceptance, albeit slowly. As it is becoming more mainstream in Europe’s auto manufacturing hub where Germany’s Volkswagen Group, BMW and Daimler are tooling up for a major ECV push.

Bernhard Mattes, head of the country’s VDA auto lobby, said last week:

“The electric model offensive of the German manufacturers is in full swing, … German automakers will triple their electric car offerings to 150 models by 2023 and invest €50 billion ($60 billion) by 2024.”

New Year…New Test

Nest year will see the level of consumer demand for ECV’s tested when Germany’s domestic auto manufacturers start to roll out competing models to Tesla’s most-affordable offering, the Model 3.

Sales for Tesla’s leapt 130% in Germany in November and in the year to November the KBA reports Tesla sales have gained 432%.

Volkswagen’s ID3 will go on sale starting at just under €30,000 ($33,000). That compares with €20,000 ($22,000) for the cheapest combustion version of the VW Golf, and roughly €44,000 ($49,000) for a Model 3.

The German government has also enhanced the cash incentives it has on offer for electrified cars as part of a large-scale climate package. The benefits would start on cars costing less than €40,000 ($44,000).

It appears that when it comes to going electric the German auto industry is striving for “2020 vision”