EU new car sales flat in July as battery-electric vehicles decline, ACEA reports

New car sales in the European Union saw a modest increase of 0.2% in July, with growth tempered by declines in key markets like France and Germany. Data from the European Automobile Manufacturers Association (ACEA) released on Thursday highlighted a significant downturn in battery-electric vehicle (BEV) sales, despite overall positive trends in car registrations.

While Belgium, the Netherlands, and France reported gains in electric vehicle (EV) registrations, these were not enough to counteract a nearly 37% drop in BEV sales in Germany, one of Europe's largest automotive markets. This decline contributed to a broader decrease in market share for battery-electric vehicles.

The numbers reveal a mixed landscape for the EU car market. Electrified vehicles, which include fully electric models, plug-in hybrids, and hybrid vehicles, represented 50.9% of new passenger car registrations in July, up from 47% the previous year. However, sales of battery-electric vehicles and plug-in hybrids fell by 10.8% and 14.1%, respectively, while hybrid-electric car sales surged by 25.7%. Hybrids now account for 32% of the market, up from 25.5% a year ago.

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Among Europe's major carmakers, Volkswagen, Stellantis, and Renault experienced declines in sales of 2.2%, 5.2%, and 1.7%, respectively, reflecting increasing competition from Chinese manufacturers. Tesla saw a notable 14.7% drop in sales, while China’s SAIC Motor reported a 24.2% increase.

The European Commission recently adjusted its tariff plans for Chinese EVs, reducing the proposed tariff on Tesla’s China-made cars to 9% while maintaining higher tariffs of up to 36.3% on other Chinese EV imports. Stellantis, which experienced the steepest decline in sales, has also faced financial challenges, including a significant drop in revenue and operating profit for the first half of the year.

In Germany, the end of EV purchase subsidies in December 2023 has contributed to the slowdown in BEV sales, highlighting the shifting dynamics in the EU’s automotive market.