‘Kazzum’ Europe without visible exit… Prolonged downturn in electric vehicle and battery industry

Continued prospects for policy retreat… Widening gap with the US in the trend, ‘It is expected that the stagnation of electric vehicle (EV) demand within Europe will persist in the long term. Due to the decrease in EV demand compared to the previous year and the lack of signs of recovery after the reduction of support policies, the performance of related industries is further deteriorating.’,
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, ‘According to industry sources on the 3rd, EV sales in Europe in May are estimated to have decreased by about 10% compared to the same period last year.’,
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, ‘Analyst Lee Yong-wook from Hana Investment & Securities shared global and regional EV sales figures for May on the 2nd. Analyzing the sales figures of Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs), he pointed out that while the Chinese market saw a 41% increase and the US a 15% increase compared to the previous year, Europe experienced a 10% decrease.’,
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, ‘Analysts Song Seon-jae and Kim Hyeon-soo from Hana Securities also estimated that the combined EV sales of BEVs and PHEVs in May decreased by 10% in Europe, increased by 15% in the US, and increased by 39% in China.’,
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, ‘Even excluding the China market, which is focused on domestic sales, the US market showed double-digit growth, while the European market experienced a decline.’,
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, ‘The slowdown in demand in Germany, the largest EV market in Europe, seems to have had a significant impact. Analyst Lee Yong-wook noted that sales in Germany decreased by 21% compared to the previous year, indicating a relatively large decline. Since early last year, Germany has gradually reduced the targets for EV subsidies, and ended the subsidy support prematurely at the end of last year.’,
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, ‘While countries like France and the UK saw an increase in sales among the major EV markets in Europe, regions such as the Netherlands, Norway, and Sweden showed a decline in sales.’,
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, ‘It is not expected that this market situation will reverse anytime soon. This is due to the significant decrease in Green Party seats in the European Parliament elections last month. With the prediction that right-wing parties will gain power and environmental policies in Europe will retreat, it is seen as difficult to promote EV adoption policies.’,
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, ‘With only Europe experiencing a decline in growth, Europe’s share in the global EV market also decreased. Hana Securities analyzed that as of May, Europe’s share in the EV market decreased to 17.9%, while China accounted for 62.3%.’,
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, ‘For the leading EV manufacturer Tesla, it was analyzed that sales in Europe decreased by 36% in May. Analysts Song Seon-jae and Kang Min-a from Hana Securities reported this information in a report analyzing the European automotive market on the 24th last month.’,
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, ‘Tesla previously marked its lowest sales in Europe in 15 months in April.’,
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, “Furthermore, the battery market, which is a key supplier for EVs, also suffered a blow. Analysts Kim Hyeon-soo and Hong Ji-won from Hana Securities mentioned in a report on ‘May Battery Market Share and June Cathode Export Update’ that ‘LG Energy Solution’s market share in Europe dropped by 6.7% compared to the same period last year due to continued sluggishness in Europe.’,
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, ‘On the 24th last month, Hi Investment & Securities stated that LG Energy Solution’s second-quarter results are expected to fall short of market expectations, citing that ‘the slowdown in EV demand in Europe has led to a significant drop in the operation rate of the Poland plant, resulting in continued fixed cost pressure’.”