Swiss New Car Market Contracts 5% in 2024 Despite EV Growth

The Swiss automotive market experienced a significant downturn in 2024, with new car registrations falling to 239,500 units across Switzerland and Liechtenstein, marking a 5% decrease from the previous year. This decline is particularly noteworthy when compared to pre-pandemic levels, which typically saw around 300,000 annual registrations. The continued depression in sales suggests a fundamental shift in the market dynamics, moving away from traditional purchasing patterns observed before the COVID-19 crisis.

Despite the overall market contraction, alternative drive systems achieved a record-high market share of nearly 62% in new vehicle registrations. This success was primarily driven by full and mild hybrids, which saw a 17% increase, capturing 33.6% of the market. However, the electric vehicle segment showed mixed results, with pure electric cars experiencing a 12.5% decline in registrations, while plug-in hybrids decreased by 10.4%. The combined market share of electric and plug-in hybrid vehicles remained stagnant at 28% of new registrations.

The stagnation in electric vehicle adoption poses challenges for Switzerland's environmental goals. The Swiss Automobile Importers Association has expressed concern about the rising average age of the country's passenger car fleet, which negatively impacts both environmental sustainability and road safety. The shift towards hybrid vehicles, while positive, may not be sufficient to meet the country's long-term environmental targets without stronger growth in pure electric vehicle adoption.

In response to the market challenges, Auto Schweiz is advocating for stronger government support for electric mobility. Key recommendations include implementing more favorable public charging tariffs, improving accessibility to charging infrastructure, and reducing vehicle prices through the suspension of automobile tax for imported electric vehicles. These measures are seen as crucial for stimulating EV adoption and achieving Switzerland's environmental objectives. The industry emphasizes the need for a 'clear focus' on electric vehicles from political stakeholders to reverse the current downward trend in EV sales.