EV Revolution News: BMW Surpasses Tesla in Sales, Canadians Prefer Chinese Electric Vehicles, Mercedes Launches New PHEV

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Those who are pleased by reports of a slowdown in electric vehicle sales should take a moment to consider the broader context. An apt comparison might be drawn with flat screen TVs. The initial models were large, heavy, and incredibly costly—often over $10,000 in the 1990s, making them pricier than some cars! Today, however, consumers can easily purchase a 72-inch smart flat screen TV for less than $500 at retailers like Walmart or Costco. What is the takeaway from this? New technologies may initially take time to gain traction, but they eventually dominate the market and become the norm. Here are some noteworthy developments in the electric vehicle sector from this week.

BMW Electric Cars Outsell Tesla In Europe

According to Autocar, BMW surpassed Tesla in electric vehicle sales in Europe during July. The automaker sold 14,869 electric vehicles in the region, outpacing its American rival by 308 units. Tesla faced a decline in sales in Europe for July, with their Model Y SUV registrations dropping by 16% to 9,544, and their Model 3 sedan decreasing by 17% to 4,694. However, it’s important to note that the first month of a quarter typically sees lower sales for Tesla, and, as we will discuss shortly, their 2024 figures are looking strong.

Overall electric vehicle sales in the EU fell by 6% year-over-year, a decline attributed to the absence of government incentives and concerns regarding resale values, according to market analyst Jato Dynamics.

Felipe Munoz, a global analyst at JATO Dynamics, stated, “The lack of clarity around the incentives for EVs continues to present a barrier to consumers considering an EV,” in an interview with EuroNews. Germany concluded its EV subsidy program in December 2023 as part of a cost-reduction effort, prompting manufacturers to reassess their strategies for electrification.

Despite these challenges, BMW has managed to perform relatively well compared to its competitors, an achievement some analysts attribute to robust brand loyalty. Others suggest that controversial comments from Tesla’s CEO, Elon Musk, may negatively impact the company’s sales. Nonetheless, Tesla still leads in year-to-date sales, with a total of 178,700 vehicles sold. BMW follows in second place with 97,525 units sold, while Volkswagen ranks third with 88,445 sales.

BMW’s electric vehicle sales include various models that contributed to its top position in the EU for July, though the Tesla Model Y remains the best-selling EV in Europe (9,544 vehicles), followed by the Volvo EX30 with 6,573 sales and the Volkswagen ID.4 with 5,295. Overall, new car sales increased by 2% year-over-year in July.

Canadians Crave Cheap Chinese Electric Cars

At CleanTechnica, we are enthusiastic about electric vehicles, as nearly all our staff drive EVs. We appreciate their low emissions and the gradual phasing out of gasoline cars, but we recognize that affordability drives consumer choices. When flat-screen TVs were priced at $10,000, sales were minimal. Now that they are considerably cheaper, they fly off the shelves. The same can be expected for electric vehicles.

The Chinese have found a successful formula for producing cost-effective electric cars, largely due to significant policy and financial backing from their government. They are now looking to broaden their export reach, with Canada being one of the target markets. This comes amidst the political fallout from the U.S. decision to impose a 102.5% tariff on Chinese-made electric cars. Canada, home to a substantial automotive manufacturing industry—many of whose products are sold in the U.S.—must navigate this situation carefully to avoid straining relations with the U.S. Currently, the only electric vehicles being imported into Canada are Chinese-made Teslas, which incur a 6% import duty.

Additionally, Canada is keen on safeguarding the nearly $46 billion already invested by companies like Volkswagen and Northvolt in establishing electric vehicle and component manufacturing facilities within its borders. Brian Kingston, president of the Canadian Vehicle Manufacturers’ Association, commented, “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.”

Amidst ongoing political discussions, CBC reports that many Canadians are eager to purchase a Chinese-made electric vehicle, especially models priced at less than half that of traditional vehicles in the country. BYD introduced its Seagull EV last year at a starting price of CAD $14,600 (approximately USD $11,000), offering a version with a range of 305 kilometers (190 miles). The least expensive conventional vehicle in Canada is priced at CAD $38,000. Although BYD has yet to launch its vehicles in Canada and prices would likely be higher than in China, the company recently hired a consultant to explore the “expected market entry of BYD into Canada.”

A vehicle with a range below 200 miles may deter some buyers, but significant savings can alleviate a lot of these concerns. Moreover, 200 miles is quite sufficient for the majority of drivers. The Seagull can be charged at home using a standard wall outlet and will be ready for use each morning.

Barbara MacLellan from British Columbia expressed to the CBC that an influx of Chinese vehicles could enhance competition in Canada. She stated, “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 readers of CleanTechnica would concur with her sentiment.

However, not everyone shares this enthusiasm. Morgan Whittall from Ontario expressed reservations about purchasing an EV from a country with questionable 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 countered that critique by noting that while China contributes to about one-third of global carbon dioxide emissions, it has also emerged as a leader in solar, wind energy, and electric vehicle production. A recent report from the Finnish think-tank Centre for Research on Energy and Clean Air indicated that 2024 may mark the year when emissions in China begin to decline.

Environmental advocates such as Environmental Defense argue that restricting Chinese electric cars will inflate prices and hinder Canada’s shift to a low-carbon economy. Last year, the government pledged to end the sale of new gasoline and diesel vehicles by 2035.

Mercedes GLC 350e PHEV With 54 Miles Of Range

This week, Mercedes quietly announced a new plug-in hybrid, the GLC 350e, which offers 54 miles of battery-only driving range. The current trend seems to favor vehicles that pair an electric motor with a gasoline engine, which might raise eyebrows among EV enthusiasts. Yet, this combination alleviates the range anxiety and charging apprehensions many potential EV drivers face. Those 54 miles should cover most daily trips, and as long as there is gasoline in the tank, the car can continue driving even after the battery is depleted—a feature that appeals to many consumers.

According to Autoblog, the GLC 350e is equipped with a 24.8 kWh battery pack and is estimated by the EPA to have a range of 54 miles on full charge. For comparison, the Volvo XC60 Recharge has a lower maximum range of 35 miles. The new Mercedes can also be charged at up to 60 kilowatts using a fast DC charger, allowing for a full charge in under 30 minutes. Pricing starts at $61,050, which is about $10,000 more than its gas-only counterpart, the GLC 300 4Matic. However, for this extra cost, buyers benefit from a vehicle with 313 horsepower and 406 lb-ft of torque, compared to the conventional model’s 255 hp and 295 lb-ft. Acceleration times are similar for both models due to the additional weight of the battery, which has the same capacity as the original Nissan LEAF. Mercedes stated that the plug-in GLC is now available at dealerships across the U.S.

The Takeaway

In conclusion, the current landscape of electric vehicle sales presents a mixed picture—some positive developments alongside some setbacks. It is clear that the electric car market is in a state of transition, with China advancing rapidly while many others appear to cling to outdated norms. As Kenny Rogers wisely sang, “You never count your money while you’re sitting at the table. There’ll be time enough for counting when the dealing’s done.” The development of electric vehicles is far from over, with continuous innovations emerging every day. A slight slowdown in sales does not signify the end of the electric vehicle revolution. While local sales may be dipping, the global trend is still favoring growth.

Policymakers should concentrate on the implications of reaching a peak car paradigm. The revolution in autonomous vehicles is just beginning and poses a significant challenge to the traditional automotive market more than electric vehicles do. The key question remains: what will the automotive industry look like when the age of private cars comes to a close? Something to ponder.