New car registrations across the European Union rose slightly in October, driven by strong performances in Germany and Spain, according to the latest data from the European Automobile Manufacturers’ Association (ACEA). The EU saw a 1.1% increase in new car registrations for the month, with notable growth in two major markets.
Germany’s car registrations rebounded by 6%, reversing three months of declines, while Spain experienced a robust 7.2% increase. However, not all countries saw growth. Italy’s new car registrations fell by 9.1%, and France also experienced a decline, with a 11.1% drop in registrations.
Looking at the year so far, new car registrations in the EU have risen by 0.7% from January to October, reaching approximately 8.9 million units. Italy saw a modest increase of 0.9%, while Spain posted a 4.9% rise. However, both Germany and France have faced declines in new car registrations, with Germany down by 0.4% and France experiencing a 2.7% drop over the same period.
Sigrid de Vries, ACEA’s director general, commented on the trend, highlighting the challenges faced by the electric vehicle (EV) market. “The latest year-to-date figures on market volume for battery electric (-4.9%) and plug-in hybrid cars (-7.9%) underline the urgent need to increase efforts to support the transition to zero-emissions vehicles,” de Vries said. She stressed the need for greater incentives and an expanded network of charging stations to encourage consumer adoption.
Battery-electric vehicles (BEVs) have seen a decline in sales, with a 4.9% drop in registrations in the first 10 months of 2024 compared to the same period last year. This decrease was primarily driven by a significant 26.6% drop in registrations in Germany. However, BEV registrations in October saw a slight uptick, increasing by 2.4% to 124,907 units.
Similarly, plug-in hybrid vehicle registrations also faced challenges. These vehicles dropped by 7.9% year-to-date, with disappointing performances in Italy and France. In October, plug-in hybrid car registrations fell 7.2%, reducing their market share to 7.7%, down from 8.4% in October 2023.
The slump in EV sales can be attributed to a combination of factors, including rising energy prices, insufficient incentives, and a lack of charging infrastructure. Additionally, higher tariffs on Chinese electric vehicles, following concerns over government subsidies, have made these cars significantly more expensive in Europe. This price increase, along with ongoing economic uncertainty and rising interest rates, has led to a dampened consumer appetite for electric vehicles.
With global economic pressures and geopolitical uncertainty also weighing on consumer sentiment, the EU faces significant hurdles in meeting its ambitious targets for the transition to zero-emissions vehicles.
