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Two things that give carmakers a glimmer of hope after dire 2020: China and EVs

Mercedes-Benz was the world’s top-selling premium carmaker in 2020, and in future it will rely increasingly on electric models like the EQC.

Mercedes-Benz was the world’s top-selling premium carmaker in 2020, and in future it will rely increasingly on electric models like the EQC.

Published Jan 12, 2021

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By Nick Carey

LONDON - Sales of luxury cars in China and electric drives in Europe were the two bright spots for European car companies in a 2020 blighted by the Covid-19 pandemic, company updates showed on Tuesday.

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China's motor industry rebounded swiftly following its shutdown to tackle the Covid-19 outbreak, while in Europe manufacturers' battle to meet tough new emissions targets helped electric vehicles move from the margins to the mainstream.

Volkswagen, the world's biggest carmaker, reported a drop in sales at its core VW brand of just over 15 percent against 2019.

While VW brand sales fell nearly 10 percent in China, its Audi brand had its best-ever fourth quarter and full-year sales in China rose 5.4 percent.

The VW brand also saw global sales of fully-electric cars jump 197 percent from 2019 to 134 000, although that still only represented 2.5 percent of the total.

"2020 was a turning point for Volkswagen and marked a breakthrough in electric mobility," said Ralf Brandstatter, head of the VW brand.

BMW saw sales rise 3.2 percent in the fourth quarter and ended 2020 down 8.4 percent. But the carmaker, which also owns the Mini and Rolls-Royce brands, said sales were up 7.4 percent in China, its best performance since entering that market in 1994.

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Meanwhile, Daimler's Mercedes-Benz brand, which reported figures on Friday, remained the world's top-selling luxury carmaker for the fourth year running. While global sales fell 7.5 percent, the premium brand saw sales in China increase 11.7 percent, including a 22 percent jump in the fourth quarter.

The electric car race

The race is now on to develop EVs to meet emissions targets and challenge market leader Tesla.

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The major carmakers need to produce large numbers of EVs to achieve economies of scale and make them profitably, and 2020 gave some hope they may be on course to achieve that.

EVs were the only good news in an otherwise bleak 2020 for Renault, which underperformed the global and European car markets.

While Renault's group sales fell more than 21 percent, its EV sales in Europe leapt more than 101 percent. The company confirmed it had met its 2020 EU emissions targets, thus avoiding fines.

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2020 Renault Zoe.

Renault's chief executive officer Luca de Meo will present a strategy update on January 14 that sources say will focus on reviving some older best-selling models as EVs.

BMW said global EV sales rose 31.8 percent versus 2019 and accounted for 15 percent of sales in Europe, "meaning electromobility is also a significant growth driver for the company in absolute terms."

BMW also met its 2020 EU emissions targets.

The carmaker said that by 2023 it would almost double its line-up of electrified vehicles to 25 models, with more than half of them fully electric.

Reuters

Related Topics:

Electric Cars

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