In Spain, new car registrations held steady, while other major European markets, such as France and Germany, experienced significant drops.
For 2024, new car registrations across the EU saw a modest increase of 0.8%, reaching around 10.6 million units. Spain was a major contributor to this uptick, with registrations surging by 7.1%. On the flip side, Germany and France faced setbacks, with Germany seeing a 1% drop and France a more pronounced 3.2% decline. Italy also saw a small dip of 0.5%.
This trend was largely driven by lingering supply chain challenges in France, and shifting consumer demands. In Germany, the persistent shortage of semiconductors played a pivotal role in the declining numbers.
December showed a positive contrast, with EU new car registrations climbing 5.1%, a recovery from the previous month’s 1.9% dip. Spain led the charge, with a remarkable 28.8% increase, while France saw a modest boost of 1.5%. Meanwhile, Germany and Italy’s struggles persisted, with registrations dropping by 7.1% and 4.9%, respectively.
Battery-electric vehicle (BEV) registrations made up 13.6% of total new car registrations in 2024, while hybrid electric vehicles (HEV) claimed a more substantial 30.9% of the market.
Sigrid de Vries, the director general of ACEA, expressed concern in an email: “At a time when we need scale more than ever to support the shift to green mobility, these numbers are worrying. If the stagnation in electric car demand continues into 2025, it could trigger high penalties for EU manufacturers. We’re counting on the Strategic Dialogue with the European Commission next week to address the significant compliance challenges we face due to weak demand.”
Despite the shift toward electric, petrol cars remained the top choice for new registrations in 2024. Petrol vehicles accounted for 33.3% of all new car registrations, while diesel cars made up 11.9%. However, December saw a 1.8% dip in petrol car registrations across the EU, with Spain being the sole major market to show growth, up by 16%. France suffered the largest fall, with registrations plunging 23%, while Italy and Germany also reported significant declines of 11.4% and 7.4%, respectively.
In total, 269,260 new petrol cars were registered in December, lowering the market share for petrol vehicles to 29.6% compared to 31.6% a year earlier. Diesel registrations also saw a decline, with a market share of 9.8% in December, down 15% from the previous year.
Battery-electric vehicles (BEVs) took a hit in December, with registrations dropping by 10.2%, accounting for 144,367 units and a 15.9% market share. This was largely due to sharp declines in Germany (down 38.6%) and France (down 20.7%).
In contrast, plug-in hybrid registrations rose by 4.9%, fueled by strong performances in France (up 44.9%) and Germany (up 6.8%).
The downturn in BEV registrations in December can be attributed in part to the EU’s new tariffs on electric vehicle imports from Chinese companies like Geely, SAIC, and BYD. These tariffs came as a response to concerns that Chinese manufacturers, supported by government subsidies, were undercutting European prices. Notably, hybrids remain unaffected by the tariffs, prompting some Chinese firms to refocus their efforts on hybrid models to maintain their foothold in the European market.
Rising living costs also played a role in dampening demand, with many Europeans hesitating to purchase new cars amid ongoing economic pressures.