After a crash, the pain can be delayed but then hits with a vengeance. That is the danger European carmakers face.
Sales of battery electric vehicles (BEV) in Europe dropped 11.3 per cent year on year in March, the second fall in four months, according to figures this month. The timing of Easter played a part. But globally sales growth has also slowed. Tesla is cutting 10 per cent of its global workforce. Mercedes-Benz has pushed back its electrification target.
For Europe’s laggard carmakers, if not the planet, slowing EV growth isn’t all bad news. They took a lackadaisical approach to electrification compared with Chinese rivals. European carmakers’ shares have held up well in the year to date. Meanwhile, EV specialist Tesla is down 40 per cent.