By Hugh Maguire.
The Backstory:
You would think if you listen to some that EV sales are rocketing ahead but in fact while indeed they are growing they are growing way more slowly than expected not just here but across Europe.
According to the SIMI new car sales figures in March this year were down some 10.4% on March 2025. Interestingly imported cars have seen a 37.7% rise when compared to March 2025.
Petrol Hybrid continues to lead as the most popular engine type at 27.36% followed by electric at 21.56% with pure petrol engine sales almost matching electric at 21.24%. Plug in hybrids were less popular at 14.41% of the market while diesel had the least number of new car sales at just 12.92% of the new car market.
So petrol hybrid and petrol cars still hold a huge chunk of the new car Irish market. We are still way behind the government targets for EV uptake. The reasons for this are quite simple really.
Why the slower than expected EV uptake?
Depreciation: There are real and justifiable concerns about the resale value of EV’s. Many motorists in particular for example buyers of the Volkswagen range of EV’s were hit hard with massive depreciation as some time ago VW allegedly discounted their new ID range to boost sales. Hard on those who had paid top whack for a new one! This is not unique to VW. The high depreciation of EV’s is a genuine concern for buyers. Beware when you hear that there is great value to be had now in a used EV. Ask yourself why? Basically it’s because the first owner took a big hit on its resale value. The question remains how the next purchaser will fare when they go to sell their now 2nd or 3rd owner used EV. Only time will give us the real answer I guess.
Real Range: Range though increasing is still a concern for some not helped in my opinion by there fact that no EV I have ever tested came close to its WLTP claimed range. I think here there is an education process needed at handover of the car by the motor dealer. The WLTP range test is just a benchmark in ideal conditions. In a nutshell I have found take that number and reduce it by about 25% and your closer to the range you may achieve in real world driving conditions.
Public Charging: Infrastructure is still a huge issue. We still do not have enough charging stations on the public network. Public charging which by the way is way more expensive than home charging ( and per KM can be more expensive than petrol even at today’s prices) is unevenly distributed. Urban coverage is better but demand often outstrips supply especially in Dublin, Cork and Galway.
Just not Practical: Finally there will always be a group of motorists for whom an EV is simply not practical. Whether it’s because they live in a complex where there are no charge points or they may live in a townhouse or apartment. It is estimated that 40% of our population lives in housing where home charging is not readily available. So an EV will never make sense for them.
While the above issues relate to Ireland they are reflected across the board in Europe and beyond. The simple fact is that EV sales are way behind what was predicted and that has had a huge impact on the motor industry.
65 Billion Euro Write down!
For the motor industry this has turned into a costly disaster. Slower than expected EV sales, high development costs, supply chain and raw material issues (prices of the finite resources being used to make batteries are very volatile) and regulatory pressure for the rapid push to EV’s has cost the European motor industry a 65 billion euro write off, the largest collective write-down in the motor industry for decades.
Who is hit hardest?
According to publicly available data the Volkswagen Group is hit the hardest with an approximate write down of some 25 to 30 billion euro, followed by the Stellantis Group (Peugeot, Fiat, Opel, Jeep, DS) at some 10 to 12 billion euro. BMW are next at some 5 to 7 billion euro with others like Mercedes at an estimated 6 to 8 billion, Renault-Nissan at 5 to 6 billion and then other smaller car manufacturers making up the balance of some 3-5 billion euro. A staggering hit.
So what are the car manufacturers doing about it?
First of all they all intend to eventually electrify their fleets but many have now extended production of their ICE (internal combustion engines) as they have realised that this is where the market will be for longer than was anticipated.
Many will try to keep within the emission regulations by producing hybrid versions of the petrol power plants.
Others are focusing on the luxury and performance car segment who’s buyers are the slowest to move to EV’s but where profits are greatest.
Take Porsche for example. They have had to completely re think their manufacturing plans as the electric Taycan is just not selling but the petrol engined 911 is selling very well. It’s relatively low volume but high profit. Their petrol Macan is outselling its EV version. It is rumoured that they are dropping plans for an EV version of the Boxster and Cayman and reverting to mild hybrid petrol engines instead. This type of reversal is seen throughout the industry.
So where does that leave you the potential new car buyer?
My advice is to do your research first. You really need to be sure an EV meets your needs in all the areas discussed above. EV’s have their place. Some are really pleasant to drive about town though not particularly engaging in any way. But this hysterical rush by governments to force everyone into one by regulation ( and those deadlines keep changing or being softened) has proven to be very misguided.
Second don’t be panicked by those who tell you petrol and diesel won’t be available in a few years………rubbish! There are many modes of transport that I am sure you know of that require one or the other. Also renewable fuels are coming and ICE engines can quite easily run on these fuels without conversion.
My final piece of advice would be don’t rush into a new EV model if home charging or resale value is uncertain. Equally don’t cling on to a pure ICE indefinitely and consider a petrol hybrid preferably the self charging type as a middle ground.
Remember the proverb:
“Never be the first to take on the new or the last to leave off the old”
Allegedly an old Chinese proverb which really does make perfect sense in this context.
In the meantime happy motoring whatever you buy and keep an eye on www.whichnewcar.ie for the very latest in new car news and road tests.