Sept 19 Reuters New car sales in the European Union fell 18.3 in August to their lowest in three years, dragged by doubledigit losses in major markets Germany, France and Italy, data from Europe39;s auto industry body showed on Thursday.

Sales of fully electric cars slumped 43.9 in August, falling for the fourth consecutive month, as the bloc39;s biggest EV markets Germany and France recorded drops of 68.8 and 33.1 respectively, the European Automobile Manufacturers Association ACEA said.

WHY IT39;S IMPORTANT

Car sales in Europe have dropped well below preCOVID19 levels, with carmakers such as Volkswagen, warning that the trend might not change in the foreseeable future.

EV sales growth has also slowed, in part due to diverging policies on green incentives, while regulators have imposed hefty tariffs to try to keep out cheap Chinese EVs.

BY THE NUMBERS

Sales of battery electric and plugin cars fell by 43.9 and 22.3 respectively in August, while those of hybridelectric cars rose 6.6 to a market share of 31.3.

Registrations at Europe39;s three largest carmakers Volkswagen, Stellantis and Renault all fell from a year earlier, by 14.8, 29.5 and 13.9, respectively.

Sales at EV maker Tesla dropped 43.2, and those for China39;s SAIC Motor were down 27.5.

CONTEXT

The market share of hybrid electric cars has increased in the EU in recent months, as buyers see them as an affordable compromise between allcombustion and allelectric.

To inject new stimulus into the EV…