New electric vehicle (EV) sales in the European Union dropped by 12% in May, driven by a 30% slump in Germany, data from Europe’s automotive industry body found.
Germany, which has the largest EV market out of the 27 countries in the group, prematurely cut its subsidies for buyers of the vehicles as part of a last-minute 2024 budget deal.
Following the decision, sales of EVs dropped by 16% year-to-date in Germany, according to the European Automobile Manufacturers Association.
Across the automotive industry, car sales in the bloc were down 3% year-on-year in May, marking the second drop in 2024.
Including Britain and the European Free Trade Association, the drop in sales improved slightly to 2.6%.
It comes as demand for EVs falls back from a strong position over previous years, with competition from cheaper Chinese-made rivals also eating away at performances.
Last week, the EU unveiled new tariffs for EVs built in China, with duties set to rise to as much as 38.1% in July.
However, Germany is attempting to stop or at least reduce the EU import tariffs set to be applied for Chinese electric vehicles.
BMW will be one company hoping a solution is found as its all-electric Mini, which is made in China, could face tariffs of 38.1%, according to reports.
The joint venture between BMW and China's Great Wall Motor to produce the EV Mini failed to provide a substantial amount of information to the EU for its investigation, therefore the car faces the highest band of tariffs introduced.