The car gives watts in Europe
Electrification is revolutionizing the automotive world, especially in Europe, where sales of gasoline-powered cars will be banned in 2035.
The European car market is set back strongly in 2022 by a shortage of electronic chips.
But the electrics protected by the manufacturers held up well. Although they accounted for less than 2% of sales in 2019, they reached 12.1% market share in 2022. And 2023 may still mark a further acceleration.
According to LMC’s Al Bedwell, “Growth in electricity sales will far outpace market growth.”
China remains a leader in vehicle electrification with very favorable government policies so far, and electric vehicle (EV) sales there are expected to double again in 2022. But in parallel with the evolution of Chinese economic activity, it may slow down in 2023. , according to LMC experts.
The North American market is slowing this turnaround. But with the proliferation of battery-powered models at Ford or GM, especially pickup trucks, the electric share could reach 7%, with 1.3 million vehicles planned for 2023, according to LMC.
In total, one in eight cars (12.5%) sold worldwide in 2023 could be electric.
Tesla, the automaker that started the electric revolution, continues to be the world’s largest seller in this category. Elon Musk’s company sold 1.3 million units of the Model Y SUV in 2022. It predicts a 37% increase to 1.8 million units in 2023.
But China is BYD’s focus: the manufacturer has almost tripled sales of electric cars in 2022 (to 900,000 units) and intends to expand in Europe and North America.
Chinese manufacturers like BYD or NIO “are the most competitive in the world, work harder and smarter,” said Elon Musk himself at the end of January.
The historic sector such as Volkswagen (with the Porsche, Audi or Cupra brands in addition to the ID range) and the Stellantis group (Peugeot, Jeep) are also increasing sales of electric models to take a place in this juicy market.
Luxury kings like Rolls-Royce or Ferrari are planning to introduce their first battery-powered models soon.
Only Toyota continues to champion hybrids and present them as a more accessible and concrete solution to the ecological transition.
Electric cars remain significantly more expensive than their petrol equivalents, starting at around €35,000 on average, and are therefore unaffordable for the middle classes despite heavy subsidies.
But Tesla announced price cuts of up to 20% in Europe and the US in early January, followed by Ford.
According to German analyst Matthias Schmidt, manufacturers in Europe could follow the same path to gain market share, but above all they could comply with increasingly strict European CO2 emission standards.
“There weren’t enough vehicles to meet demand in 2022. The situation could reverse in 2023 and manufacturers will have to + push + their cars + and lower prices,” commented Mr. Schmidt.
They could also respond to the arrival of Chinese producers who plan to produce imported electricity in Europe as well as offering it at affordable prices.
Smaller and cheaper models like the Renault 5 will also hit the market in the next few years.
Lack of terminals
Fear of being electrocuted remains one of the main factors preventing drivers from switching to an electric car. Their autonomy is limited to a few hundred kilometers, and their charging can take from about twenty minutes to several hours, depending on the power of the terminal.
According to representatives of the automotive sector, the development of large and fast terminal networks is crucial for long journeys, even if most charging takes place at home.
According to a report by consulting firm McKinsey, the EU will need 3.4 million charging stations in 2030. In total, it could cost 240 billion euros.
Behind Tesla, players like Fastned or Ionity (uniting BMW, Ford, Hyundai, Mercedes and Volkswagen) are investing to cover the sides of the road.