Europe's car sales rose 0.9 per cent in 2024 as strong hybrid vehicle registrations outpaced petrol cars for a fourth month in December, ACEA European Automobile Manufacturers Association's data showed Tuesday. The market share of Renault bested that of Stellantis for the first time since the French and Italian automotive group Combined were formed a year ago. Sales into December rose 16.6% at Renault and its share in Europe’s market grew to 11.9% from 10.1% while Stellantis sales were down 6.7% and its share 11.6% against 11.7%. Sales increased by 4.9% for the month at Volkswagen.  

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Good times for hybrid growth, bad times for EV challenges:

Last year, Tesla's market value surpassed that of Ford and other stalwarts. Yet a slowdown in sales caused its stock to plummet this year, that contributed to Ford's shares hitting record highs.  

December sales data also showed good positive gains for hybrid electric vehicles (HEV), up 33.1 percent and plug in hybrid electric vehicles (PHEV), up 4.9 percent. However, BEVs experienced an 10.2% drop, representing the continued challenge in full adoption for battery powered cars. In December, electrified passenger cars (HEVs, PHEVs and BEVs) represented 57.7% of registrations in the EU, compared to 53.3% in December 2023.  

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With a 28.8% sales increase, Spain led the way among the major European markets, followed by a 7.1% decline in Germany and 4.9%, in Italy. December car sales across the European Union, the European Free Trade Area and the United Kingdom reached 1.1 million – 4.1 per cent up on a year earlier.  

Industry at a crossroads:

At this time of Europe's transition toward electric vehicles, the high production costs and increased competition from Chinese carmakers have worried automakers. This year will see the introduction of stricter CO2 emissions targets, which loom as another regulatory pressure.  

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These regulations are based on ambitious EV adoption expectations to which ACEA President Ola Källenius has recently objected, pointing to the need for more clarity around supporting mechanisms to drive demand.  

Meanwhile, U.S. President Donald Trump signaled a shift in automotive policy during his inaugural address, vowing to roll back Biden-era emissions regulations, potentially complicating the global push for electrification.