European car sales continue growth streak as demand rises for EVs
Could Demand For Higher Irish Suv Istock For Taxes However, Lead To Evs The File Picture: Drivers Rising
Auto sales in Europe rose in June as growing demand for electric cars and improved parts supply helped fuel an 11th consecutive month of growth.
However, the rising demand for EVs could lead to higher taxes for Irish SUV drivers. The Tax Strategy Group, which includes advisors and officials across government departments, hinted that higher taxes could be implemented for heavier vehicles that use fossil fuels to make up for revenue lost as motorists switch to electric cars.
New-car registrations increased 19% to 1.27 million vehicles, the European Automobile Manufacturers’ Association said. Sales of battery-electric vehicles surged 55%, while deliveries of diesel cars declined 10%.
Carmakers are still working down order books as longstanding shortages of critical components like semiconductors have eased.
The outlook, though, is clouded by prospects that supply-chain logjams could return amid surging demand for EVs, and consumers may cut back spending due to higher costs of living and slowing global growth.
At the same time, competition for EV-related investments is heating up. The UK, which has seen its car industry shrink in recent years, landed a significant win on Wednesday when Tata Group announced plans to build a £4bn (€4.6bn) battery plant in Britain to supply EVs made by Jaguar Land Rover Automotive.
For the first time, EV sales outpaced those of diesel-fueled cars in the European Union. The bloc registered 158,252 EVs — a market share of about 15% — while 139,595 diesel cars were purchased, representing about 13% of sales.
Buyers in Germany registered 52,988 fully electric cars in June, the most in Europe and a 64% increase from the same month last year. France also contributed to EV growth with 33,280 sales, while the Netherlands added 13,892 battery-powered cars.
Meanwhile, Swedish truck maker Volvo posted a better-than-expected 57% jump in second-quarter adjusted operating profit, helped by price hikes.
Orders for the quarter fell 10%, which Lundstedt said was partly due to Volvo's reluctance to take on too many orders as well as partly the result of buyer caution.
Truck makers have for a few years now kept a tight lid on order books, aiming to avoid excessive lead times amid global shortages of key components.