The European electric-auto makers are among the severe economic victims of the coronavirus crisis. Market sales have been declining tremendously, and forecasts suggest a fall of about 20% for all of 2020. Fiat Chrysler Automobiles (FCA), BMW, Renault, and Daimler are among the large automobile companies likely to suffer from hefty fines from the European Commission. This will result if these companies are not able to maintain enough sales of electric vehicles, to meet the EU carbon footprint standards. With the COVID-19 pandemic hitting wide and far, these companies might not reach the overall target sales, even though battery-electric sales have shown to be relatively more reliable.
The forecast for new car sales in Western Europe has been the major casualty of this pandemic. Several automotive companies have registered a continuous decline in sales of battery electric vehicles (BEVs), and among them is LCM automotive. The LCM automotive has, in the past two weeks, cut it Western Europe BEVs sale forecast by an overwhelming 25%, which brings don the figures to 625,000 from its previous 650,000. This is something to worry about for the industry. According to Matt Schmidt, a berlin auto analyst, his forecast for BEVs sales in western Europe fell from 700,000 to 556,00.
Statistics suggest that the COVID-19 pandemic will significantly lead to a decline in electric car production, delay in launches of new electric cars, and a reduction in consumer demands. This will result in poor performance and reflect negatively on a manufacturer’s reputation, as they will fail to meet the EU’s regulations. Existing weaknesses in the industry, such as high prices for electric vehicles and inadequate charging infrastructure, will hinder the industry from bouncing back. The financial downfall will also hamper the government’s efforts to assist the industry as more attention and finances will be geared towards crucial measures such as unemployment and inflation. The falling fuel prices around the world will not help electric car sales either.
It is also notable to state that even though the financial world is crumbling, the companies are still persevering and putting in more effort to stay afloat. Even though Renault’s PHEVs are still lagging, their overall sales since the start of the year have been strong. Daimler’s ratings have increased significantly due to its flexibility, and Fait Chrysler Automotive is gradually growing. A lot needs to be done for these companies to get back to their former state and even do better and claim European dominance. But if these companies do not adapt and improvise soon, the sale of electric cars in Europe will be a sorry state.