The electric vehicle revolution in Europe is facing setbacks. Will consumers return to gasoline?

According to media reports on Tuesday, Volkswagen's electric vehicle sales in the European market plummeted by nearly 25% in the first quarter.

Globally, sales of electric vehicles under the Volkswagen Group's Audi, Skoda and Porsche brands fell 3% to 136,400 units, while sales of traditional fuel vehicles increased 4% to nearly 2 million units.

Media analysis pointed out that this downward trend includes multiple factors, such as high inflation, rising energy costs, and consumers' waning enthusiasm for electric vehicles.

The sharp drop in sales of Volkswagen's electric vehicles is seen as a warning that the European market is undergoing a reversal of a widespread return to fuel vehicles.

The analysis highlights that demand for electric vehicles has cooled as European governments have reduced subsidies and slowed down their goals of phasing out fuel and diesel vehicles.

In the UK, Prime Minister Sunak postponed the ban on the sale of new fuel and diesel vehicles from 2030 to 2035, and canceled subsidies for new electric vehicles last year. Although Volkswagen has popular models such as e-Tron and ID in the British market, demand for fuel vehicles is growing faster.

Within the EU, various parties are discussing amending the policy banning the sale of fuel vehicles to allow the use of mixed fuels. Germany's elimination of electric vehicle subsidies and the European Union's suspension of emission targets have significantly affected Volkswagen's sales.

Although the sales of electric vehicles in Europe have fallen sharply, Volkswagen's electric vehicle sales in the Chinese market have soared by 91%. Other car companies such as BMW are also adjusting their electric vehicle strategies to cope with fluctuations in consumer demand.

Hildegard Wortmann, member of the Executive Board of Volkswagen, said:

Our diverse product portfolio gives us the necessary flexibility to compensate when demand fluctuates in certain segments, as is currently the case with pure electric vehicles, in other segments.

It is worth noting that European car companies have recently called for support for the influx of Chinese electric vehicles. Earlier this month, Mercedes CEO Ola Kallenius urged the European Union to reduce tariffs on electric vehicle imports from China. Kallenius said that in the long term, increased competition would help European automakers produce better cars and that government protectionism was "moving in the wrong direction."

As the electric vehicle revolution encounters headwinds in Europe, the entire auto industry is grappling with fluctuations in consumer demand, increasing competition and policy shifts. The decline in sales of Volkswagen's electric vehicles has sounded the alarm, reminding car companies and policymakers that they need to weigh economics, sustainability and consumer preferences and adopt a balanced development path.