Financial Times: Electric car sales in Europe exceeded diesel car sales for the first time in December 2021

Financial Times: Electric car sales in Europe exceeded diesel car sales for the first time in December 2021

While many new electric models are attracting consumers, bans on older diesel cars in some cities and increased taxes on diesel cars in major markets have further negatively affected diesel car sales. According to the Financial Times, in December last year, sales of electric cars in Europe exceeded those of diesel cars for the first time, as consumers prefer subsidized, zero-emission cars rather than fuel-powered cars affected by the Volkswagen "emissions gate" scandal.

According to data compiled by independent auto analyst Matias Schmidt, preliminary estimates show that in 18 European markets, including the UK, more than a fifth of new car sales are electric, while diesel cars account for less than 19%.

Electric car sales are growing steadily, thanks to generous government subsidies in countries such as Germany and strict rules introduced in 2020 requiring EU manufacturers to sell low-emission cars.

The trend accelerated in the fourth quarter of last year, when Tesla delivered a record 309,000 electric vehicles, proving that it can adapt well to semiconductor supply chain bottlenecks.

European automakers were fined by the EU for prioritizing the production of more profitable models (mainly highly polluting SUVs) during the supply chain crisis. In order to avoid this problem from happening again and reduce overall automobile carbon dioxide emissions, European countries further promoted the sales of electric vehicles in December. 176,000 electric vehicles were sold in Western Europe that month, reaching a record high, and sales were 6% higher than in December 2020. In contrast, diesel car sales last month were about 160,000.

Diesel sales have been falling steadily since Volkswagen admitted to fitting 11 million diesel cars worldwide with cheating devices, which accounted for well over half of sales in the 18 European countries surveyed at the time.

Within 30 days of the Volkswagen "emissions scandal" breaking out in September 2015, Volkswagen developed its first ID.3 plan. Schmid said that the ID.3 is Volkswagen's flagship electric car and has been on sale since its launch in 2020.

Volkswagen led the electric vehicle market in Western Europe last year, selling more than 310,000 electric vehicles in 2021.

Schmid added:

While many new electric models are attracting consumers, bans on older diesel cars in some cities and increased taxes on diesel cars in major markets have further negatively impacted diesel sales.

The resale value of diesel cars is also uncertain in Germany, Europe's largest auto market, where the new coalition government has signaled its intention to rethink fuel tax credits, which currently make diesel about 14 cents per liter cheaper than premium gasoline.

From Wall Street News

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