Volkswagen is tripling its electric car sales, ahead of climate regulations

FRANKFURT, Germany (AP) – Despite the pandemic, Europe is getting faster in electric cars.

Car maker Volkswagen tripled sales of battery-only cars in 2020 when the new electric compact ID.3 hit the market, ahead of the strict new EU limits on car emissions. And Germany, which has long been lagging behind in adopting electric vehicles, saw more people buy electric cars in December than opted for previously dominant diesel vehicles.

Those are early signs of what is likely to be next year of increasing market share for electric cars as EU regulations drive their adoption despite the recession triggered by the coronavirus pandemic that shrank the overall car market.

Volkswagen said Tuesday that the brand of the same name sold 134,000 battery-powered cars last year, up from 45,000 in 2019.

Including hybrids, which combine an internal combustion engine and an electric motor, 212,000 were sold to electric cars, up from 82,000 in 2019.

Volkswagen’s announcement comes as the automotive industry in Germany reports that one in four cars sold in the country in December had an electric motor, which was supported by incentives as part of the government stimulus package during the COVID-19 recession.

Battery and hybrid cars made 26.6% of sales that month, and were ahead of diesel cars, which had 26.2%. That’s also a sign of diesel’s sharp decline following the 2015 Volkswagen scandal involving diesel cars rigged to cheat in emissions testing.

Electric cars are so far a small but fast growing part of the European market. According to the European Automobile Manufacturers Association, In the July-September of 2020 quarter, 9.9% of cars sold were rechargeable vehicles, compared to 3.0% a year earlier. The association publishes annual statistics on February 4.

EU car manufacturers must sell more zero-emission cars to meet stricter average limits on carbon dioxide, the primary greenhouse gas responsible for climate change. Those limits went into full effect on January 1. Failure to achieve a fleet average of less than 95 grams of carbon dioxide per kilometer driven can result in heavy fines.

Sales were boosted by government incentives and an increasing number of new models that – like the ID.3 – were designed purely as electric cars rather than converted from internal combustion models. Electrical design alone can mean more interior space as a selling point. The compact ID.3 will not enter the American market, where Volkswagen will offer the electric SUV ID.4 made on the same mechanical base.

Demand is held back by a lack of places to charge electric cars, including for people who live in apartment buildings and cannot install a charging box at home. The German auto association, the VDA, said there is only one publicly available charging station for every 17 electric cars.

California-based Tesla has been a major factor in the electrical revival with its Model 3 and its own network of fast charging stations.

The government in China, the world’s largest car market, is also urging car manufacturers to cut emissions.

Electric vehicle usage is slower in the United States, where regulatory burdens are weaker and gasoline costs just $ 2 a gallon, depending on the region. That compares to $ 1.30 per liter of gas, or $ 6 per gallon in Germany, much of which is taxes.

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