EV Growth Trends In Europe Slow Down, Consumers Wait For More Affordable Models

Tesla electric car ranks. (Doc. Tesla)

JAKARTA - Towards the end of the year, the growth in sales of electric vehicles (EVs) has slowed down, especially in European regions, as experienced by major producers Tesla, Volkswagen, and Mercedes-Benz.

Reuters reported Tuesday, November 14, EV sales in Europe increased 47 percent in the first nine months of this year. However, major producers experienced unsatisfactory results. Factors such as high interest rates and sluggish markets led to a decline in buyers' interest in EVs. For example, orders for electric vehicles from leading brands like Volkswagen only reached half the previous year.

This trend is also influenced by consumers who are waiting for a better and more affordable EV model which is expected to be available in the next two to three years. However, the reason for this slowdown is not only that. According to a number of parties, including dealers in Europe and the results of research by four global data analysts, economic uncertainty and consumer concerns about aspects of safety, reach, and price of electric vehicles still contribute to this trend.

"The main problem is uncertainty," said Thomas Niedermayer, owner of a German dealer.

Data from AutoTraders also supports this view, showing that the latest EV in the UK has a price of 33 percent higher than fossil-fueled vehicles. In addition, the latest entry-level models from Chinese manufacturers such as BYD and Nio, which will enter the market before 2025, are also considered a driving factor for the slow adoption of EVs in Europe.

Critics have long warned that a lack of price appeal on electric vehicles could hamper sales growth, especially among early users and fleet companies. Unsatisfactory performance in September, surveys of consumer sentiment, and negative comments from automakers and dealers show that Europe may have entered a lower growth era.

US automakers such as Ford and GM are also experiencing similar difficulties. The two companies recently announced delays in launching more affordable EV models and cutting spending in response to lower demand and higher production costs, especially after a new contract with the United Auto Worker.