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Those celebrating the news that sales of electric cars are slowing somewhat might want to take a step back and see the big picture. An apt analogy might be the flat screen TV phenomenon. The first of them were big, bulky, and OMG expensive — upwards of $10,000 in the 1990s. In other words, they cost more than some new cars! And yet, today we can walk into Walmart or Costco and walk out with a 72″ smart flat screen TV for less than $500. What’s the point? Simply this: New technologies may take a while to arrive, but eventually they sweep aside everything that has gone before to become the new normal. Here are a few tidbits in the news this week about electric cars that readers may find interesting.
BMW Electric Cars Outsell Tesla In Europe
First up, Autocar reports that BMW sold more electric cars in Europe in July than Tesla. It delivered 14,869 new EVs in Europe last month, 308 more than its American rival. Tesla experienced a slump in Europe in July, with registrations of its Model Y SUV falling by 16% to 9,544 and those of its Model 3 saloon falling by 17% to 4,694. Note, though, that the first month of the quarter is generally not the best for Tesla, and as we’ll see in a moment, its 2024 numbers are quite high.
The total number of electric cars sold in the EU fell by 6% year on year, which market analyst Jato Dynamics attributed to the lack of government incentives and buyers’ concerns about resale values.
“The lack of clarity around the incentives for EVs continues to present a barrier to consumers considering an EV,” Felipe Munoz, global analyst at JATO Dynamics, told EuroNews. Germany ended its EV subsidy program in December 2023 as part of a cost-cutting drive which prompted manufacturers to rethink their electrification strategies.
So far, BMW has managed to emerge relatively unscathed compared to its competitors, which some analysts put down to brand loyalty among customers. Others have suggested that polarizing political remarks from Elon Musk, the CEO of Tesla, may be harming sales at the American firm. Even so, Tesla is still leading the pack when looking at year-to-date sales, counting a total of 178,700 vehicles. BMW is in second place with 97,525 sales, while Volkswagen comes in third with a total of 88,445.
Sales of electric cars by BMW include a number of models, which combined helped it claim the top spot in the EU in July, but the Tesla Model Y is still the best selling EV in Europe (9,544), followed by the Volvo EX30 with 6,573 sales and the Volkswagen ID.4 with 5,295. Overall, total sales of new cars were up by 2% year on year in July.
Canadians Crave Cheap Chinese Electric Cars
We love electric cars here at CleanTechnica, where virtually every member of our staff drives an EV. We applaud their low emissions and how they are displacing gasoline, but we also are realistic enough to know that price is the engine that drives commerce. When flat screen TVs cost $10,000, few people bought them. Now that they cost a fraction of that, they are flying out the door. The same could be true of electric cars.
The Chinese have cracked the code on how to manufacture affordable electric cars — albeit with massive policy and financial support from the Chinese government — and they are turning their eyes toward other nations as they look to expand their export markets. One of those countries is Canada, which is caught in the political crosscurrents created by the decision by the US to raise tariffs on Chinese made electric cars to 102.5%. Canada has a large auto manufacturing industry and many of the cars it makes are sold in the US. It has to be careful not to irritate Uncle Sam by declining to join the trend toward tariffs on China’s electric cars. The only electric cars currently imported into Canada are Chinese made Teslas, which are subject to a 6% import duty.
Canada also has a vested interest in protecting the nearly $46 billion that has been invested by companies like Volkswagen and Northvolt to develop manufacturing facilities for electric cars and their components in Canada. “We are gaining a foothold in this emerging industry, and we’re doing that in partnership with our American partners and allies. If we do not take action now to give these facilities time to come online to allow manufacturers to build up their production capacity, we put up all that investment at risk,” Brian Kingston, president of the Canadian Vehicle Manufacturers’ Association, said.
Despite all that high-level political stuff, the CBC reports that many Canadians would willingly buy a Chinese made EV which currently retails for less than half what other cars in Canada cost. BYD debuted its Seagull EV last year at a starting price of $14,600 Canadian (about USD $11,000) for a version with 305 kilometers (190 miles) of range. The least expensive conventional car available costs $38,000 Canadian. BYD is not selling its cars in Canada yet, and the price would certainly be higher there than it is in China, but the company hired a consultant last month to advise it on the “expected market entry of BYD into Canada.”
A car with less than 200 miles of range would be a deal breaker for some, but saving tens of thousands of dollars can offset a lot of those concerns. And 200 miles is nothing to sneer at. The number of people who drive 200 miles every day is quite small. The Seagull can be plugged into a conventional wall outlet when not in use and be ready for whatever driving needs to be done in the morning.
Barbara MacLellan, who lives in British Columbia, told the CBC that an influx of Chinese vehicles would help spur competition in Canada. “The problem has been that legacy automakers have not stepped up to the plate on this. It’s not early days. We are late to this. We are seeing the climate change now.” Many CleanTechnica readers will agree with her.
Not everyone is thrilled, of course. Morgan Whittall in Ontario argued it doesn’t make sense to buy an EV from a country with such poor environmental policies. “You’re not really getting what you’re paying for when you’re saying, ‘I’m doing this for climate change,’ but you’re buying it from a place that really isn’t considering how their process is affecting the climate,” he said. The CBC, to its credit, pushed back on those claims. China, it said, emits about one third of the world’s carbon dioxide, according to the International Energy Agency, but has also become a world leader in solar and wind energy, along with electric vehicles. A recent report from the Finnish think-tank Centre for Research on Energy and Clean Air projected that 2024 could be the year emissions in China start to fall.
Environmental groups such as Environmental Defense argue that blocking the entry of Chinese electric cars will make them more expensive and delay Canada’s transition to a low carbon economy. Last year, the Liberals committed to end the sale of new gasoline and diesel vehicles by 2035.
Mercedes GLC 350e PHEV With 54 Miles Of Range
Flying under the radar this week was the announcement from Mercedes that it has a new plug-in hybrid with 54 miles of battery-only range — the GLC 350e. The trend today seems to be toward more cars that combine an electric motor with a gasoline engine. Logically, the idea makes EV purists cringe, but it eliminates the range anxiety and charging fears many drivers have when they think about driving an electric car. 54 miles is enough to handle most daily driving chores, but as long as there is gas in the tank, the car can keep driving long after the energy stored in the battery is depleted. It’s an idea that appeals to many people.
According to Autoblog, the GLC 350e has a 24.8 kWh battery pack and is rated by the EPA as having 54 miles of range on a full charge. The Volvo XC60 Recharge is rated at just 35 miles of battery-only range. The new Mercedes can also be charged with up to 60 kilowatts of power using a DC fast charger — enough for a zero to full charge in less than 30 minutes. The GLC 350e starts at $61,050, about $10,000 more than the conventional GLC 300 4Matic. It features 4Matic all-wheel drive standard, and its non-PHEV equivalent (GLC 300 4Matic) starts at $50,600. But for the extra money, drivers get a car with 313 hp and 406 lb-ft of torque. The conventional model makes do with 255 hp and 295 lb-ft. Acceleration times are identical for the two cars, thanks to the extra weight of the battery, which has the same capacity as the original Nissan LEAF. Mercedes says the plug-in GLC is available at US dealerships now.
The Takeaway
What we have here is a mixed bag — some good news, some not so good news. It is fair to say the world of electric cars is in flux, with China pushing the envelope of what is possible while the rest of the world is clinging to the past as long as possible. “You never count your money while you’re sitting at the table,” Kenny Rogers taught us. “There’ll be time enough for counting when the dealing’s done.” The dealing isn’t done for electric cars yet, not by a long shot. Innovations are happening every day and the picture is getting brighter all the time. A little slowing of the pace does not mean the EV revolution is over. Sales of electric cars may be down where you live, but globally the trend is up nicely.
What the political wizards really need to focus on is what happens when we get to peak car. The revolution in self-driving cars is just beginning and is more of a threat to the global auto industry than are electric cars. The real question is, what will happen to the auto industry when the era of the private passenger car passes? Food for thought.
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