EVs Beat Diesels As Electric Car Sales Ramp Up In Europe
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Auto analyst Mathias Schmidt tells the Financial Times that sales of battery-electric cars in Europe and the UK were higher than sales of diesel-powered cars for the first time in December. “The diesel death march has been playing on repeat since September 2015 when ‘Dieselgate’ was first unveiled — causing VW to draw up the first plans of the ID.3 within 30 days of the scandal coming to light,” he said. The December data indicates 176,000 battery electric vehicles were sold in December — 6% more than in December, 2020 — as opposed to 160,000 diesels.
The Financial Times goes to some lengths to point out to its readers that the boom in electric cars is largely attributable to generous government subsidies and draconian emissions rules that force manufacturers to build low and zero emissions cars. That approach, of course, is anathema to “free market” advocates. If it weren’t for the fact that the world is hurtling toward a climate catastrophe of unimaginable proportions, such market machinations might be condemned and rightfully so.
The Financial Times reports the German government is about to revisit the wisdom of tax credits for diesel fuel that make it 14 cents per liter cheaper than premium gasoline. The love affair with diesel in Europe began after the OPEC oil embargoes in the 1970s.
Diesel engines do squeeze more miles out of a gallon of fuel than gasoline engines, and so there was a reason to promote the sale of diesel-powered vehicles at that time. The mechanism most countries chose was to increase taxes on gasoline and decrease taxes on diesel fuel. The justification for doing that has long since evaporated, however.
According to SwissInfo, sales of electric vehicles — including plug-in hybrids and conventional hybrids — reached a “tipping point” in 2021, particularly at the end of the year. For the period from September to November, fully electric vehicles accounted for 18.3% of new registrations. Including plug-in hybrids, that figure rose to 28% according to the Touring Club Switzerland. The Tesla Model 3 leads all other EV models in sales in Switzerland. The Volkswagen ID.3 is in second place, with less than half as many cars sold.
“Given the ongoing technological advancements, increased social acceptance and the ever-increasing choice of electric vehicle models, the development of electromobility is progressing faster than expected. The 50%-mark for fully electric vehicles, which most experts expected only around 2030, should therefore be reached significantly faster than expected,” TCS said.
While Switzerland’s EV charging infrastructure is on par with that in other European countries — a total of 8,497 public charging stations were available across Switzerland as of the end of 2021 — there are still too few chargers available for apartment dwellers and those who park on the street. “The hurdles for home charging are still too high for tenants, owners of apartments and residents who park on the streets,” says Krispin Romang, managing director of the Swiss eMobility association.
Switzerland is implementing new laws designed to slash carbon emissions by 50% in 2030 as compared to 1990. They include tightening tailpipe emission standards to make them similar to those imposed by the EU. Fines imposed by the new law will be used to pay for charging infrastructure upgrades.
The Takeaway
The Financial Times may harrumph about government subsidies and regulations, but they are working. If they smack of socialism to some, so be it. Socialism is preferable to extinction any day.
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