In a pivotal moment for the European Union (EU) car market, the month of October witnessed electric vehicle (EV) registrations surpassing diesel sales for the first time. Amidst a robust expansion, new registrations soared by 14.6% to reach 855,484 units, marking the fifteenth consecutive month of growth, according to the European Automobile Manufacturers Association (ACEA). Key markets such as France (+21.9%), Italy (+20%), and Spain (+18.1%) reported notable double-digit percentage increases, contributing to the positive trend. Germany, although more modest, still reported a 4.9% year-on-year increase.
Positive momentum in EU car market
The EU car market continued its positive momentum with new car registrations up by 16.7% over the first ten months of 2023, totaling almost nine million units. Notably, Italy (+20.4%), Spain (+18.5%), France (+16.5%), and Germany (+13.5%) were significant contributors to this upward trajectory.
Shift in power source dynamics
A significant transformation was observed in the power source dynamics, with battery-electric cars surpassing diesel in cumulative market share. In October, battery-electric cars accounted for 14.2% of the market, up from 12% last year. This shift brought the year-to-date share to 14%, marking the first time it has exceeded diesel’s cumulative share.
Hybrid-electric cars secured the second spot with nearly 29% market share, while petrol cars maintained their lead, albeit decreasing to 33.4% in October.
Record surge in electric car registrations
In October 2023, registrations of battery-electric cars in the EU experienced a record surge, growing by 36.3% to reach 121,808 units. Key contributors to this growth included Belgium (+147.3%) and Denmark (+100.7%), with Germany, the largest market, growing modestly (+4.3%). The year-to-date volume for battery-electric cars stood at 1.2 million units, a substantial 53.1% gain compared to the previous year, capturing a 14% share of the EU car market over the ten-month period.
Registrations of hybrid-electric cars also saw a substantial increase of 38.6% in October, driven by growth in Germany (+57.9%), France (+40.1%), and Italy (+28%). The cumulative increase for the first ten months totalled 2.2 million units, representing over a quarter of the market.
Decline in plug-in hybrid electric cars
Despite notable increases in Belgium (+70.2%) and France (+34.2%), registrations of plug-in hybrid electric cars dropped by 5% year-on-year to 72,002 units in October. Germany’s decline (-49%) offset the growth in other markets, resulting in a decrease in market share from 10.2% to 8.4%.
Petrol and diesel market dynamics
The EU petrol car market grew by 8.1% in October, although its market share contracted from 35.4% to 33.4% compared to the same period last year. Key markets, including Italy (+21%), France (+17.4%), Spain (+7.7%), and Germany (+7.5%), contributed to this increase.
Conversely, the EU diesel car market continued its decline in October, decreasing by 13.2%. This decline was evident in major markets, including France (-29.4%), Spain (-20.2%), Germany (-4.6%), and Italy (-3.7%). Diesel cars now have a market share of 12%, down from 15.9% in October last year.
As electric vehicle sales continue to rise, surpassing diesel, the EU car market is undergoing a notable transformation, reflecting changing consumer preferences and a broader shift towards sustainable mobility.