Huge surge in demand for electric vehicles

Demand for electric vehicles was high considering the lack of affordable models on the market.

More than half the cars sold in Europe are SUVs, while there has been a huge surge in demand for electric vehicles (EVs), the latest data show.

According to an analysis from motoring business intelligence firm Jato Dynamics, September was a record month for sports utility vehicles, or SUVs. 

Elon Musk's Tesla Model Y was the top-selling overall car in September across Europe, albeit recording a 1% drop compared to a year previously, with just over 29,300 sold. 

However, the next best sellers recorded massive spikes from a year ago, Jato data show. 

The Peugeot 208 saw almost 22,200 sold across Europe in September while nearly 20,100 Renault Clios were sold — a 13% and 26% rise compared to the previous September.

The top five was rounded out by the Volkswagen Golf and Dacia Sandero, which sold more than 19,000 each, or a 20% and 8% year-on-year rise respectively.

When it comes to full EVs, the Tesla Model Y sold four times the amount of its nearest competitor. 

However, the second best seller, the MG 4, has clearly captured the imagination of drivers since it was introduced to the European market, recording an 887% rise in sales compared to the previous September, with more than 7,300 sold.

The Peugeot 208, Fiat 500, and Volkswagen ID.4 rounded out the top five of EVs, while the Skoda Enyaq, Mercedes EQA, and Audi Q4 all recorded very healthy sales in the month.

European new vehicle registrations increased by 10% to about 1.16 million in September compared to the same month in 2022, marking the slowest rate of growth recorded this year. 

In comparison to September 2020, when the covid-19 pandemic was impacting the market, total volume was down by 11%, Jato said.

The London-based firm's global analyst Felipe Munoz cautioned that while EVs have been a key driver of this growth, "it is unlikely that this will be sustained for much longer, considering truly affordable internal combustion engine alternatives now remain a rarity in the market".

Affordability

The demand for electric vehicles was high considering the lack of affordable EVs on the market, Jato said.

In September, EV registrations totalled 186,380 units, or just over 16% of the market — an increase of 13% when compared to September 2022. 

In the year to date, about 1.46 million new EVs have been registered, marking a 47% increase when compared with the same period last year. 

Mr Munoz said: “Despite higher prices, these vehicles have a considerable presence within the market. Now, we will only see this growth continue if and when cheaper alternatives arrive.”

The environmental impact of SUVs has led to calls in some quarters for heavier taxation, or even their phasing out in the coming years among sustainable transport experts.

SUVs would have been the sixth largest emitter of carbon in the world last year if they were a country, while cars are now 300kg heavier than they were since the beginning of the century, an Oireachtas committee heard in September.

Larger cars increase energy consumption and CO2 emissions in several ways, University College Cork (UCC) professor of sustainable energy Hannah Daly told TDs and senators.

There is a compelling argument to include weight and vehicle footprint in the calculation of vehicle registration tax (VRT) for both fossil-fuelled cars and EVs, she said.