EU Car Market Grows, Chinese Brands Increase Share
New car registrations in the EU increased by 3.2% year-on-year in May. Sales of electric and hybrid vehicles drove the growth, while sales of internal combustion engine cars declined.
The European automotive market showed signs of growth in May 2024, with new passenger car registrations in the EU rising by 3.2% compared to the previous year, reaching 955,013 vehicles. Battery electric vehicles (BEVs) were a significant driver, with sales increasing by 43% to 203,417 units, according to the European automobile manufacturers' association ACEA.
Concurrently, sales of traditional internal combustion engine cars, both gasoline and diesel, saw a substantial decrease. Gasoline car registrations fell by a fifth, and diesel car sales dropped by nearly 20%. Hybrid vehicle demand continued to grow, partly due to the diminishing availability of new models without hybrid functionality over the years.
Overall, for the first five months of the year, new passenger car registrations in the EU grew by 4% to approximately 4.75 million vehicles. The market share for solely battery-powered cars increased from 15.3% to 20%.
Chinese manufacturers like BYD, Geely, and SAIC Motor (under the MG brand) are expanding their presence in the European market. This comes despite a 22% drop in sales on China's domestic market in May. China's industry association CPCA has drastically lowered its 2026 forecast for the domestic auto market, which is expected to further boost Chinese manufacturers' focus on exports.
Volkswagen maintained its position as the largest car manufacturer in the EU, despite a 3.6% decrease in sales in May. Other major European manufacturers, such as Stellantis and Renault, also experienced slight declines, while BMW Group and Mercedes-Benz reported modest growth.