Introduction
The European Union’s car market witnessed a significant resurgence in January 2024, following a period of deceleration in the previous month. This recovery was marked by a substantial increase in new car registrations, which rose by 12.1% compared to the same period in the previous year, totaling 851,690 units. This growth was not isolated to a single region but was rather a collective upswing across the EU’s major markets.
Market Growth Across the EU
The rejuvenation of the EU car market was particularly pronounced in its largest economies, where the number of new car registrations saw impressive gains. This section delves into the performance of these markets and the overall EU market dynamics.
Major Market Performance
Germany led the charge with a remarkable 19.1% increase in new car registrations, followed by Italy, which saw a 10.6% rise. France and Spain also contributed to the upward trend with 9.2% and 7.3% growth, respectively. These figures reflect a robust demand for new vehicles across the continent, signaling a positive start to the year for the automotive industry.
EU Market Share by Power Source
When examining the market by power source, a shift in consumer preference becomes evident. Battery electric cars improved their market share to 10.9%, up from 9.5% in the previous year. Hybrid-electric vehicles continued to solidify their position, capturing nearly 30% of the market. In contrast, the combined market share for petrol and diesel cars fell to around 50%, a notable decrease from 54% a year earlier.
Segment-Specific Trends
The EU car market’s growth trajectory was not uniform across all segments. This section explores the varying performance of electric cars, hybrid vehicles, and traditional petrol and diesel cars.
Electric Cars on the Rise
January 2024 was a particularly strong month for battery-electric vehicles, which saw sales surge by 28.9% to 92,741 units. This segment’s market share matched the overall electric market share at 10.9%. The most significant gains were observed in Belgium, the Netherlands, France, and Germany, which together accounted for two-thirds of all battery electric car registrations in the EU.
Hybrid-Electric and Plug-in Hybrid Electric Cars
Hybrid-electric cars also experienced a surge in popularity, with a 23.5% increase in new registrations. This growth was spearheaded by Spain, France, Germany, and Italy, leading to 245,068 units sold in January, which represented 28.8% of the EU market share. Meanwhile, plug-in hybrid electric cars rebounded from a previous slump, growing by 23.8% to 66,660 units. This recovery was largely driven by significant increases in Belgium and Germany, with plug-in hybrids now making up 7.8% of total EU car sales.
Petrol and Diesel Cars
The petrol car market in the EU expanded by 4%, with Italy and Germany experiencing the most substantial increases. Despite a slight decrease in market share from the previous year, petrol cars remained the most popular choice, accounting for 35.2% of the market in January. On the other hand, the diesel car market faced a 4.9% contraction, with France, Spain, and Italy showing notable declines. However, Germany bucked the trend with a 4.3% increase in diesel car sales. Diesel vehicles ended up with a 13.4% market share, a decrease from 15.8% in the prior year.
Conclusion
The EU car market’s performance in January 2024 paints a picture of an industry in transition, with electric and hybrid vehicles gaining ground while traditional petrol and diesel cars begin to lose their dominance. The significant growth in new car registrations across the EU’s major markets is a positive indicator for the automotive sector, suggesting a robust demand for new vehicles and a shift towards more environmentally friendly options. As the industry continues to evolve, these trends are likely to shape the future of mobility in the European Union.
