The European auto industry has experienced a tepid recovery since the COVID-19 pandemic hit, with sales in 2020 dropping by 24% compared to the previous year. While the industry has shown some signs of recovery in 2021, with new car registrations in the EU increasing by 11.2% in the first half of the year, the growth has been slower than anticipated.

The slow recovery has ignited competition among European automakers, who are vying for a larger share of the market. With the pandemic causing consumers to be more price-sensitive, automakers are focusing on offering competitive prices and promotions to entice buyers.

At the same time, electric car growth has also slowed in Europe. After experiencing strong growth in 2020, with electric cars accounting for 10.5% of total new car sales in the EU, the share of electric cars has decreased slightly in 2021, accounting for 7.5% of new car sales in the first half of the year.

The slower growth of electric cars can be attributed to a number of factors, including supply chain issues, high costs, and consumer concerns about range anxiety and charging infrastructure. Nevertheless, automakers continue to invest heavily in electric vehicle technology, as stricter emissions regulations and climate change concerns drive the need for more sustainable transportation.

Overall, while the European auto industry is facing challenges, it remains a critical part of the region's economy and will continue to evolve in response to changing consumer preferences and technological advances.

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