Stock of electric cars in France: the reasons for a surplus
It would be simple to say that “nobody wants them anymore” to explain the abundance of electric cars in stock in France, but there are actually more complex factors. The current situation reveals worrying signs in the automotive sector. Sales growth is slowing, and several manufacturers like General Motors, Porsche, Ford, and Volvo are adjusting their strategies to maintain their thermal and hybrid ranges longer than expected. It is therefore legitimate to wonder what is happening in the electric car market.
What do the numbers say?
The results for the first half of 2024 show a notable stagnation. The growth of the European electric car market fell to 1.3%, whereas it had surged by 53.8% in the first half of 2023.
A study by Transport & Environment explains that, if Germany is excluded, electric car sales in the EU grew by 9%. The slowdown in Germany is mainly due to the end of state subsidies for these vehicles at the end of last year. In France, despite stricter rules for obtaining the ecological bonus, sales increased by 14.8% thanks to the implementation of social leasing.
A mind-boggling stock of electric cars
Manufacturers ended up with a surplus of electric cars in stock, anticipating a demand that ultimately did not materialize as expected. Tesla, for example, had to rent spaces to store its new cars, notably in parking lots and shopping centers. In Europe, thousands of Chinese electric cars remain stored in ports due to a lack of drivers available for their transport.
Storage to avoid customs taxes
The EU has imposed additional customs duties on imports of Chinese electric cars, particularly targeting the MG brand. In response, many models were imported before the tax increase, which explains the high stocks. Volvo, also affected due to its belonging to the Chinese group Geely, has also provisioned many EX30 models.
A possible resurgence in demand?
Despite a slowdown, demand has not stopped. Subsidies have been reduced in some countries like Germany and France, but have been reinforced in Italy and Spain. Battery prices in China are falling, which could positively influence the costs of electric cars in Europe. However, for the market to sustain without subsidies, vehicle prices will necessarily have to drop.
Towards a price drop?
For an electric car “starting at 25,000 euros” to be truly accessible, a significant price reduction is necessary. New models, such as the upcoming ë-C3, are expected to arrive in 2025 with more attractive prices. The current stocks could also be subject to promotions to clear out parking lots, but beware of a possible increase in the prices of cars produced in China starting in November 2024 in Europe.
