The European new passenger car market experienced a modest 0.9% growth in 2024, with 12,909,741 new registrations across 28 European countries, according to data from JATO Dynamics. Despite this increase, the industry remains nearly 2.9 million units below pre-pandemic levels, reflecting ongoing challenges such as inflation, changing mobility habits, and high vehicle costs.
Hybrid Vehicles Drive Growth Amid EV Slowdown
Hybrid vehicles emerged as the strongest performing segment in 2024, with a 21% increase in registrations compared to the previous year. Toyota led the hybrid market, accounting for nearly half of all hybrid registrations, followed by Renault Group, Hyundai-Kia, Nissan, and Honda.
Conversely, battery electric vehicles (BEVs) experienced a slight decline, with registrations falling by 1.2% to 1,985,996 units. The market share of BEVs decreased from 15.7% in 2023 to 15.4% in 2024, attributed to unclear incentives, high retail prices, and concerns over charging infrastructure. Volkswagen Group remained the top BEV seller, followed by Tesla and Stellantis. The situation is expected to improve in 2025 with the introduction of more affordable BEV models.
China’s Influence Grows in European Auto Market
China emerged as the sixth-largest country of origin for cars sold in Europe, surpassing Japan, the United Kingdom, Turkey, and South Korea. Vehicles produced in China, including those from brands such as SAIC Motor, Geely, BYD, Chery, and BMW Group, have gained significant traction. Analysts predict that Chinese-made cars will continue to expand their presence despite potential tariff impacts.
SUVs Dominate Market with Record Share
SUVs accounted for 54% of total registrations in 2024, marking a record-high market share. Compact SUVs (C-SUVs) led the segment with 42% of SUV registrations, followed by smaller models (B-SUVs) at 36%. Luxury SUV sales saw a notable increase of 13%, reaching 56,300 units. Volkswagen Group dominated the SUV segment, followed by Stellantis and Hyundai-Kia.
Top-Selling Models: Dacia Sandero Takes the Lead
For the first time, the Dacia Sandero became the best-selling car in Europe, overtaking the Tesla Model Y. The Sandero’s affordability contributed to its strong performance, particularly in Spain, Portugal, France, Italy, and Belgium. Meanwhile, Tesla Model Y registrations fell by 17%, largely due to reduced price incentives and increased market competition.
Volkswagen Golf regained some market traction, with strong sales in Germany, Italy, Austria, and Spain. Other models showing significant growth included the BMW X1 (+30%), Seat Ibiza (+34%), Opel/Vauxhall Astra (+38%), and Jeep Avenger (+93%). Among new entrants, the Volvo EX30 emerged as Europe’s third best-selling BEV with 78,000 registrations.
The European car market in 2024 reflected a shifting landscape, with hybrid vehicles outperforming BEVs, Chinese automakers gaining influence, and SUVs maintaining their dominance. While challenges persist, including economic uncertainties and changing consumer preferences, industry experts anticipate a rebound in BEV adoption in 2025 as more affordable models enter the market.
