EV Slump Spreading from NZ to Overseas

Fiat’s parent Stellantis has said that the slump in sales of 500e is “linked to the deep difficulties experienced in the European [EV] market by all producers”. The company is therefore interrupting production for a month.

Figures suggest Fiat sold 74,885 of its 500s, petrol and electric, across Europe this year, to the end of July. That’s 24 per cent fewer than in the same period last year.

Meantime, the market share of full electrics in Europe fell to 13.5 per cent in July 2024, down from 14.6 per cent a year earlier.

An expert in the field commented “The lack of clarity around the incentives for and future of EVs continues to present a barrier to consumers considering an EV. 

“These factors, alongside the low residual value of EVs, contributed to the decline seen in July.”

Slow sales of the 500e and the phasing out of the petrol 500 have spurred Fiat to develop the new 500 Ibrida (Hybrid).

It will tide Fiat over as it navigates the drawn-out transition to selling solely electric cars.

Fiat CEO Olivier François recently said “We obviously, like everyone else, thought that the world would go electric faster and the cost of electrification would go down faster.

“But we couldn’t imagine that Covid would happen, shortage of raw materials would happen [and] the European Society – not all, not the youngest part – would turn their backs on the sustainable solutions.

“But this is the reality. We have to face those realities.”

As well as introducing the 500 Ibrida, Fiat is working to  develop a new battery pack for the 500e.

Stellantis boss Carlos Tavares said this will “significantly increase the range of the 500e while significantly reducing the cost”.