By Alessandro Parodi
(Reuters) -New car sales in Europe were up by 0.9% in 2024, led by double-digit growth in hybrid car registrations, which exceeded petrol for a fourth consecutive month in December, industry data showed on Tuesday.
Renault (EPA:RENA)’s market share in the continent overtook Stellantis (NYSE:STLA)’ for the first month since the Franco-Italian group was forged in January 2021, data by the European Automobile Manufacturers Association ( ACEA (BIT:ACE)) showed.
WHY IT’S IMPORTANT
The European car market is undergoing a complicated EV transition, as EV sales growth disappoints and carmakers oppose measures to encourage consumers to abandon combustion engines, such as CO2 emission rules coming into force this year.
European automakers also lament high production costs and rising competition from China.
BY THE NUMBERS
December sales in the European Union, Britain and the European Free Trade Area (EFTA) grew by 4.1% year-on-year to 1.1 million cars sold.
Registrations at Volkswagen (ETR:VOWG_p) and Renault grew by 4.9% and 16.6% respectively, while they fell by 6.7% at Stellantis.
Renault’s market share in Europe rose to 11.9%, while Stellantis’ slid to 11.6%.
In the EU, December sales grew by 5.1%, as the registrations of hybrid electric cars (HEVs) and plug-in hybrids (PHEVs) grew by 33.1% and 4.9% respectively, while fully electric cars (BEVs) dropped by 10.2%.
Electrified vehicles – either BEV, HEV or PHEV – sold in the bloc accounted for 57.7% of passenger car registrations in December, up from 53.3% in the previous year.
Among the largest EU markets, Spain led gains with a 28.8% increase, while Germany and Italy continued to decline, by 7.1% and 4.9% respectively.
CONTEXT
The new ACEA president, Ola Kaellenius, said last Thursday that the CO2-emitting car targets were based on expectations of a take-off of EV demand that had not happened and urged political leaders to come up with ideas.
U.S. President Donald Trump said in his inaugural address on Monday that he would revoke regulations set by the Biden administration which Trump calls the “EV mandate”, confirming recommendations by his transition team first reported by Reuters in December.
