According to data from JATO Dynamics covering 28 European markets, new passenger car registrations in Europe totaled 1,087,699 units in May 2024, reflecting a 2.5% decrease compared to the same period last year. However, these figures remain higher than those recorded in May 2022 and 2021, indicating a recovery trajectory despite current challenges.
Felipe Munoz, Global Analyst at JATO Dynamics, noted that the European car market has only partially rebounded since the global pandemic, reaching approximately 75%-80% of its pre-pandemic size. This scenario has resulted in many European factories operating below full capacity, providing an opportunity for Chinese OEMs to penetrate the market without facing tariffs.
A significant factor contributing to the overall decline was a 10% reduction in registrations of battery electric vehicles (BEVs) and plug-in hybrid vehicles (PHEVs). BEVs, in particular, experienced an 11% decline year-on-year, totaling 151,237 units, while PHEVs saw a 7% decrease.
Munoz highlighted that high prices continue to hinder broader adoption of BEVs and PHEVs among consumers, despite some models showing resilience. Brands like BMW performed strongly with models such as the iX1, i5, and iX2, surpassing electric vehicle registrations of competitors like Audi and Mercedes-Benz.
Moreover, Chinese-made BEVs saw a notable increase in registrations, rising 25% year-on-year to nearly 28,000 units. This surge boosted the market share of Chinese BEVs in Europe from 13.2% to 18.5% year-on-year, with two Chinese models securing spots among the top five best-selling BEVs for May.
In contrast, BEVs manufactured outside China experienced a 16% decline in registrations. Munoz pointed out that this uptick in Chinese BEV registrations may be driven by anticipations of impending European Commission tariffs.
Additionally, traditional internal combustion engine (ICE) vehicles showed resilience in the market, with brands like MG seeing higher volumes in their ICE offerings compared to BEVs. This shift reflects strategic adjustments by automakers amidst regulatory uncertainties and market dynamics.
The Volkswagen Golf notably returned with a strong performance, registering 20,000 units in May and securing second place in the overall model ranking year-to-date, just behind the Volkswagen T-Roc.
Overall, while the European car market faces challenges, strategic shifts and regulatory dynamics continue to shape consumer choices and industry trends.
