Key Points:
- New car sales in the EU rose 4.3% in June, the highest since July 2019.
- Registrations of battery electric cars fell marginally despite significant increases in Belgium and Italy.
- Sales of hybrid-electric cars grew by 26.4%. EVs accounted for 50% of new passenger car registrations, up from 47.5% a year earlier.
- Volkswagen, Stellantis, and Renault saw growth in car registrations. Germany’s early end to EV subsidies likely contributed to the decline in EV registrations.
European Union new car sales increased by 4.3% in June, reaching their highest levels since July 2019. This growth was largely driven by significant gains in major markets such as Italy, Germany, and Spain, according to data released by the European Automobile Manufacturers Association (ACEA) on Thursday. However, despite the overall positive trend, registrations of battery electric cars saw a slight decline.
The ACEA data revealed that while Belgium and Italy experienced significant increases in battery electric car registrations—50.4% and 117.4%, respectively—these gains were insufficient to counterbalance the double-digit declines observed in Germany, the Netherlands, and France.
Leading European car manufacturers, including Volkswagen, Stellantis, and Renault, hope car sales will continue to improve throughout the year. This optimism persists despite a noticeable cooling in demand for electric vehicles (EVs) after several years of robust growth and increasing warnings about the challenging global market conditions.
Specifically, in June, sales of battery electric and plug-in cars in the EU fell by 1% and 19.9%, respectively. Conversely, hybrid-electric car sales surged by 26.4%. For the year’s first half, battery electric car registrations increased by 1.3%. Despite the cooling demand, EVs—encompassing fully electric, plug-in hybrids, and full hybrids—accounted for 50% of all new passenger car registrations in the EU in June, up from 47.5% in the same period last year.
In June, among the top European carmakers, Volkswagen, Stellantis, and Renault saw their car registrations increase by 4.7%, 0.4%, and 6.2%, respectively. This positive trend highlights the resilience of these companies in a market that is experiencing fluctuating demand for electric vehicles.
Germany, the EU’s largest market for EVs, has played a significant role in these dynamics. In December, the country decided to end subsidies for buying EVs earlier than planned as part of a last-minute budget deal for 2024. This policy change likely contributed to the observed decline in EV registrations.
The ACEA’s data underscores the complex landscape of the European automotive market, where traditional internal combustion engine vehicles still play a significant role despite the growing prominence of various types of electric vehicles. As the year progresses, car manufacturers and market analysts will closely monitor whether the recent trends continue and how policy changes across different EU countries impact the overall market.