Europe’s Auto Market Shows Signs of Recovery
The European auto market achieved its first growth of the year in April, thanks to a significant rebound in electric vehicle (EV) sales. According to data from the European Automobile Manufacturers’ Association (ACEA), new vehicle registrations in the European Union rose by 1.3% compared to the same period last year.
Electric vehicle sales surged by more than a third to 145,341 units, helping to boost the overall market. The market share of electric vehicles increased to 15.3% in the first four months of the year, up three percentage points from the previous year. Hybrid vehicles also saw a marked increase in demand, with about one in three new cars in the EU being hybrid.
ACEA Director General Sigrid de Vries noted that while the growth is positive, conditions need to improve for electric vehicles to achieve widespread adoption. She emphasized the importance of purchase incentives, expanding charging infrastructure, and lower electricity prices. The Volkswagen Group, which includes brands such as Volkswagen, Skoda, Audi, and Porsche, remains the market leader in the EU.
In April, Volkswagen sold nearly 260,000 vehicles in the EU, a 2.9% increase from the previous year. Other major manufacturers also reported varying sales performances. BMW saw a nearly 10% increase in sales, reaching 66,661 vehicles, while Mercedes recorded a modest 0.7% rise to 46,415 vehicles. In contrast, Tesla’s sales plummeted by more than 50%.
The trend suggests a continued shift towards hybrid and electric vehicles, with hybrids accounting for over 43% of the market when including plug-in hybrids. Pure combustion engine vehicles now hold just over a 38% market share.
The auto market’s recovery is seen as a positive sign for the industry, though challenges remain, particularly in expanding the EV market share further.
