European Car Sales Drop 2.8% in March; Electric Vehicle Demand Cools

European new-car sales fell by 2.8% to 1.38 million units in March, with electric vehicles (EVs) experiencing a significant 11% decline, according to the industry body ACEA. The slowdown, accentuated by economic pressures such as higher interest rates and reduced subsidies, affected major automakers like Volkswagen Group and Stellantis. Notably, Germany, Sweden, and Norway saw reduced consumer interest in EVs. This trend has prompted some automakers to delay plans to phase out combustion engines, while others, like Tesla, are making major workforce reductions in response to the downturn.