Summary
– EV Box, the electric vehicle charging business of Engie, reported losses for Q1 2024
– Engie also reported lower pre-tax earnings for the first quarter due to natural gas price decline
– EV Box is expected to continue posting losses in 2025
– Engie acquired EV Box in 2017 but has struggled to find a buyer for the business
– The global EV market has faced challenges with slower uptake, subsidies phase-out, and consumer concerns about affordability and range
Article
The electric vehicle charging business EV Box, a part of French utility giant Engie, reported a loss for the first quarter of 2024, following a loss for the full year of 2023. The company is expected to record a loss in 2025 as well. Engie’s overall pre-tax earnings for the first quarter decreased due to lower natural gas prices and consumption. Excluding nuclear operations, Engie’s earnings before interest and tax (EBIT) fell by 3.7% compared to the same period in 2023. Warmer weather in Q1 2024 led to lower volumes for French gas distribution and supply activities.
EV Box reported a loss of $24 million for the first quarter of 2024, following a loss of $152 million in 2023. The company is also projected to post a loss in 2025. Engie has been unsuccessful in finding a buyer for the loss-making EV charging business, which it acquired in 2017. Due to the ongoing losses at EV Box and the lack of success in identifying a potential buyer, Engie stated that it is actively exploring all options to disengage in accordance with local regulations.
The electric vehicle markets in developed economies have faced challenges recently, with slower-than-expected adoption of electric vehicles. While the International Energy Agency remains optimistic about the global EV market, the auto industry is concerned about slowing sales as subsidies are phased out in key markets. Consumers are also hesitant due to concerns about affordability and range. Sales of battery electric vehicles in the U.S. declined in the first quarter, losing market share, while new car sales in Europe fell in March, partly due to a decrease in EV registrations.
Overall, the EV industry is facing obstacles that are impacting market growth. Despite the optimistic outlook from agencies like the International Energy Agency, there are concerns within the auto industry about slowing sales and consumer hesitancy. The phase-out of subsidies in key markets and ongoing challenges with affordability and range are contributing to the slower adoption of electric vehicles. The struggles of EV Box, a part of Engie, highlight the difficulties faced by companies in the EV charging sector. Engie’s efforts to find a buyer for EV Box have been unsuccessful, leading the company to consider all options for disengagement.
In conclusion, despite the promising prospects for the global EV market, the industry is currently facing challenges in developed economies. Slower-than-expected adoption of electric vehicles, combined with concerns about affordability and range, are impacting sales. The struggles of companies like EV Box, a subsidiary of Engie, illustrate the difficulties faced by businesses in the EV charging sector. As the industry navigates these obstacles, companies and regulators will need to work together to address the issues and promote the widespread adoption of electric vehicles.
Read the full article here
