Europeans buy more electric cars than diesel – 07/19/2023 – Market

Sales of electric cars surpassed those of diesel cars in June for the first time in the EU (European Union), which wants to ban cars with new combustion engines within 12 years, announced the ACEA (Association of European Automobile Manufacturers).

Gasoline and hybrid vehicles continue to lead sales, but with 158,000 vehicles sold. Electric vehicles went from 10.7% of the market to 15.1% in one year.

Sales of this type of car increased especially in the Netherlands, Germany, France and Belgium.

This advance is driven in particular by Tesla, as 1 out of 5 vehicles sold in Europe in the first half carries the capital T, i.e. 137,000 cars.

Electric car sales by European leader Volkswagen also soared (217,000 units sold, +68%), especially its ID.4, ID.5 and Audi Q4 SUVs.

Diesel continues to fall, affected by low purchase incentives and rising fuel prices. Despite the good numbers in Germany and Central Europe, this sector already represents 13.4% of sales.

Last spring, the European Union ratified its transition to a market 100% free of greenhouse gas emissions by 2035, in order to comply with its objectives in combating climate change.

Sales of hybrid vehicles, which pollute a little less and whose purchase allows you to benefit from bonuses, also registered a strong increase and represent 24.3% of the market, driven by Germany, France and Italy.

On the other hand, sales of rechargeable hybrids (which can be connected to an outlet) fell and comprise 7.9% of the market.

Gasoline remains the biggest energy used by new vehicles in the European Union, with 36.3% of sales in June, an increase of 11%, in line with the global improvement.

More broadly, new car sales grew in Europe in the first half, up 17.9% on year-on-year pace.

However, with 5.4 million vehicles sold, the market remains 21% below the level of the first half of 2019, the last year of all records before the Covid-19 pandemic.

Volkswagen, fit

Among the main markets, Spain (+24%) and Italy (+22.8%) recorded strong sales increases in the first half of 2023. In France, sales grew by 15.3% and in Germany by 12.8%.

“The growth of recent months shows that the European car industry is recovering from the logistical problems caused by the pandemic,” ACEA said in a statement.

The European car market returned to a growth trajectory in August 2022, after the hard hit of the Covid-19 crisis, which added to a significant shortage of crucial parts, such as electrical components.

Since the beginning of the year, Volkswagen has largely consolidated its position as the largest car seller in Europe, occupying 26.1% of the market (+1.3 points in a year) with more than 1.4 million vehicles sold. It was driven by the dynamism of its flagship brand, Audi; the Czech Skoda and the Spanish sports car Cupra.

The German giant is followed by the Franco-Italian-American Stellantis (18.8% of the market, one point less than a year ago). Peugeot, Opel, Fiat and Citroën recorded declines. On the other hand, sales of Alfa Romeo and Jeep (lesser brands) increased thanks to their new models.

France’s Renault reached 11.1% of the European market (+0.5 points in the annual comparison), driven by its low-cost Dacia vehicles, whose volume grew by 30.1% in the first half of the year.

The growth of Hyundai-Kia and Toyota has slowed down and both brands represent 8.4% and 6.8% of the market, respectively.