Europe’s new passenger car market saw modest growth of 0.9% in 2024, with registrations reaching 12.9 million units across the EU28, according to data from JATO Dynamics. Despite this slight increase, the market remains nearly 2.9 million units below pre-pandemic levels.
Hybrids Outpace EVs as Consumer Preferences Shift
While hybrid vehicle registrations surged by 21% year-on-year, battery electric vehicles (BEVs) faced a slowdown, declining by 1.2% to 1.98 million units. The BEV market share dipped slightly from 15.7% in 2023 to 15.4%, with uncertainty over incentives, high retail prices, and infrastructure concerns contributing to the decline.
Toyota led hybrid sales, accounting for nearly 50% of all hybrid registrations in Europe, while Renault Group, Hyundai-Kia, Nissan, and Honda rounded out the top five manufacturers in the segment.
China Gains Ground in European Market
Chinese-made vehicles outsold those from Japan, the UK, and Turkey, making China the sixth-largest country of origin for new car registrations in Europe. Leading the charge were SAIC Motor, Geely, BYD, Chery, and BMW Group, whose Chinese-assembled models contributed to this growth.
SUVs Dominate as Hatchbacks Decline
SUVs reached a record market share of 54%, with 6.92 million units sold, while hatchbacks continued to lose ground. Compact SUVs remained the most popular, making up 42% of SUV registrations, followed by smaller B-segment SUVs at 36%. Luxury SUV sales also saw a 13% rise.
Dacia Sandero Tops Sales, Tesla Model Y Slips
The Dacia Sandero claimed the title of Europe’s best-selling car for the first time, dethroning the Tesla Model Y, which dropped to fourth place after a 17% decline in registrations. Meanwhile, the Volkswagen Golf showed signs of recovery, climbing back up the rankings.
Despite sluggish recovery since the pandemic, analysts expect market conditions to improve in 2025, particularly for BEVs, as prices fall and infrastructure improves. However, the rise of hybrid vehicles and Chinese competition is reshaping Europe’s automotive landscape.
