Summary
- European new car registrations for EVs dropped by 10.8% in July 2024
- Hybrid vehicles saw a 25.7% increase in registrations in July
- Volvo’s EX30, the smallest and cheapest EV, has been driving growth in Europe
- The EX30 will be one of the most affordable EVs in the US at a starting price of $34,950
- Volvo is delaying the launch of the EX30 in the US to 2025 due to a 100% tariff on EVs imported from China
Article
The European Automobile Manufacturers Association released new data showing that new car registrations in Europe grew by just 0.2% in July 2024. Electric vehicle registrations fell by 10.8% to 102,705 units, leading to a decrease in market share to 12.1% compared to 13.4% the previous year. Despite an increase in sales in some countries like Belgium, the Netherlands, and France, a significant decline in Germany affected the overall market. Hybrid vehicles, on the other hand, saw a 25.7% increase in registrations, with France, Spain, Germany, and Italy all experiencing growth and pushing the market share to 32%.
Volvo led the growth in new car registrations in Europe in July, with 22,079 units sold, a 36.7% increase from the previous year. The Volvo EX30, the smallest and cheapest EV from the automaker, has been a key driver of this growth, with 47,172 models sold through July. Volvo has outpaced rivals like Volkswagen, Stellantis, Hyundai, BMW, Mercedes-Benz, and Tesla in terms of registration growth in Europe. The EX30 is one of the most affordable EVs in Europe, starting at around 36,000 euros, and Volvo expects it to have a similar impact in the US where it will be priced at $34,950.
Despite initially planning to launch the EX30 in the US later this year, Volvo has pushed back the release to 2025 due to a 100% tariff announced on EVs imported from China, where the EX30 is currently manufactured. The company is accelerating production at its Ghent, Belgium plant to meet US demand. The EX30 will be available in single- and Dual-motor powertrains with a range of up to 275 miles. It is equipped with various tech and safety features, including a 12.3″ tablet-style infotainment display with Google built-in and wireless Apple CarPlay support.
The EX30 will be one of the most affordable EV options in the US market, starting at $35,000, compared to the average price of $56,520 for new EVs in July 2024. Some of the other low-priced EVs available include the Nissan LEAF, Mini Cooper SE, Hyundai Kona Electric, Hyundai IONIQ 6, and Tesla Model 3. Although the delay in the US launch will allow competitors like the Chevy Blazer EV to reach the market first, Volvo still expects the EX30 to drive significant growth in the US market. The company is also planning to introduce two new electric SUVs in the US in the coming years.
While the EX30 offers an attractive price point and a range of features expected from Volvo, including advanced technology and safety systems, the delay in its US launch may impact its competitive position in the market. Despite this setback, Volvo remains confident in the EX30’s potential to attract customers looking for an affordable and environmentally friendly transportation option. It will be interesting to see how the EX30 performs in the US market once it is released in 2025 and how it will compare to other EV offerings in terms of sales and consumer interest.
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