European Car Market Sees Modest Uptick in 2024
The European car market experienced a slight increase of 0.8% in 2024, with a total of 12,847,929 units sold, according to the European Automobile Manufacturers Association (ACEA). This growth was largely driven by the rising popularity of hybrid vehicles.
Country-Specific Trends
Spain emerged as a bright spot, with a 7.1% growth in car sales in 2024. In contrast, France, Germany, and Italy witnessed declines of 3.2%, 1%, and 0.5%, respectively. December saw a 4.1% year-on-year increase in car sales across the European Union, Britain, and the European Free Trade Area, reaching 1.1 million units.
Manufacturer Performance
Volkswagen and Renault saw significant gains in registrations, with increases of 4.9% and 16.6%, respectively. However, Stellantis experienced a 6.7% decline in the same period. In the EU, December new car registrations rose by 5.1%, with hybrid electric vehicles (HEVs) and plug-in hybrids (PHEVs) driving the growth.
Electric and Hybrid Vehicles
While battery electric vehicles (BEVs) saw a 10.2% decrease in December, plug-in hybrid registrations rose, thanks to gains in France and Germany. Hybrid-electric vehicle registrations surged, boosting their market share to 33.6%. This growth meant hybrids exceeded petrol car registrations for the fourth month in a row.
Petrol and Diesel Vehicles
In contrast, petrol car registrations dipped by 1.8% in December, with all major markets, except Spain, experiencing declines. Diesel vehicles also saw a market share drop to 9.8% after a 15% decline, with most EU markets noting double-digit decreases.
Subsidies for Fossil-Fuel Company Cars
A study commissioned by the environmental group Transport & Environment revealed that the five largest EU economies are collectively spending €42bn ($45.6bn) annually on subsidies for fossil-fuel company cars. This highlights the need for a shift towards more sustainable options in the industry.
Market Share Shifts
The market share for petrol cars fell to 29.6%, down from 31.6% in the same month last year. Hybrid-electric vehicles, on the other hand, continued to gain traction, with a market share of 33.6%. Plug-in hybrids maintained an 8.3% market share, despite a 6.8% drop in year-total volumes for 2024 compared to 2023.
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