Electric cars and plug-in hybrids surge in Europe in 2021

Even while the automotive sector has been shaken by repeated disruptions - from the covid-19 shock to the shortage of chips and semiconductor materials expected to drag on until 2022 - sales of electric cars and plug-in hybrids in Europe continue to post “explosive” growth.

Explosive electric cars and plug-in hybrids growth in Europe

After an already outstanding 2020 for these vehicles (electric and plug-in hybrid), when sales climbed 137% compared with 2019 - all the more striking given the European car market’s abrupt 23,7% drop - 2021 looks set to go further.

Across the first half of 2021, electric-car registrations leapt by 124% year-on-year, while plug-in hybrids rose even faster, up 201%, more than tripling the previous result. These figures come from Schmidt Automotive Research, which reviewed 18 Western European countries that account for around 90% of all electrified vehicle sales across Europe.

In practical terms, that growth equals 483 304 electric cars and 527 742 plug-in hybrid cars sold in the first six months of the year, corresponding to market shares of 8,2% and 9%, respectively. Schmidt Automotive Research forecasts that, by year-end, combined electric and plug-in hybrid sales will reach two million units, representing 16,7% of the market.

What is driving demand for electrified vehicles

There are several factors behind these explosive gains, including the sharp expansion of the electrified vehicle line-up, as well as the strong incentives and tax benefits currently available.

Tesla Model 3, the best-selling electric car

Whatever the mix of reasons, one model stands out: the Tesla Model 3. It remains the clear leader among electric cars, with almost 66 thousand units sold in the first six months of the year, according to Schmidt. It also recorded its best-ever month in Europe in June, with more than 26 thousand units sold.

In second place, with 30 292 units, is the Volkswagen ID.3 - virtually neck and neck with the Renault Zoe in third (30 126 units), separated by just over 150 units - yet still more than 35 thousand units behind the leader. In fact, even if you combine ID.3 sales with those of the ID.4 (the fourth best-selling electric car, on 24 204 units), they still do not surpass the Model 3.

The Top 10 best-selling electric cars in Europe in the first half of 2021:

• Tesla Model 3
• Volkswagen ID.3
• Renault Zoe
• Volkswagen ID.4
• Hyundai Kauai Electric
• Kia e-Niro
• Peugeot e-208
• Fiat 500
• Volkswagen e-Up
• Nissan Leaf

Ford Kuga leads among plug-in hybrids

Plug-in hybrids are selling even more strongly than electric cars. According to Schmidt, the Ford Kuga PHEV is the segment leader, holding a 5% market share, with the Volvo XC40 Recharge (PHEV) close behind.

Completing the top three is the Peugeot 3008 HYBRID/HYBRID4, followed by the BMW 330e and the Renault Captur E-Tech.

It is also worth noting the excellent performance of conventional hybrids (which cannot be charged externally) in the first half of 2021, with ACEA (the European Automobile Manufacturers’ Association) reporting a 149,7% increase versus the same period in 2020.

Volkswagen Group leads electrified sales by manufacturer group

In 2020, electric-car and plug-in hybrid sales benefited greatly from the substantial incentives introduced after the first lockdowns eased in May–June in major European markets (particularly France and Germany), as well as from manufacturers “flooding” the market in December to help their emissions figures. In 2021, however, the rise now being seen is sustained, without relying on such tactics.

Looking beyond individual models, Volkswagen Group leads electric and plug-in hybrid sales with a 25% share, followed by Stellantis on 14% and Daimler on 11%. The Top 5 is completed by BMW Group, also on 11%, and the Renault–Nissan–Mitsubishi Alliance on 9%.