European car sales are slowing down, forcing big car companies like Ford and Volkswagen to cut costs. Car sales in October only grew by a tiny bit, with some countries like France, Italy, and the UK seeing fewer cars sold. Even Germany, Europe’s biggest car market, didn’t see a big increase.
One big reason for this is the shift to electric cars. This change isn’t happening as quickly as expected, and people are finding it harder to afford cars because of rising prices.
To save money, Ford is cutting thousands of jobs, and Volkswagen is considering closing some of its factories. The UK is a bit of an exception. Car sales there are up because the government is offering big discounts on electric cars.
In Germany, where Chancellor Olaf Scholz’s government scrapped aid late last year, EV sales declined 4.9 per cent in October, and are down more than a quarter after the first ten months. Porsche AG and Mercedes-Benz Group AG have dialled back their EV ambitions in recent months, citing slower-than-expected momentum for plug-in models. With stricter rules coming up next year, car companies that don’t sell enough electric cars could face big fines.
Many people are now choosing hybrid cars, which use both gas and electric power. This is helping companies like Toyota, whose hybrid car sales are increasing. Overall, the European car market is facing tough times, and companies are having to adapt to these changing conditions.
“As we head towards the end of the year, carmakers are increasingly rolling out discounts and deals to sell off any unsold stock,” said Felipe Munoz, Global Analyst at Market Research Firm JATO Dynamics in a separate statement. “This is helping registration figures stabilise and shouldn’t be mistaken as an indication of market recovery,” he added.
