New Car Sales in Europe Turn Negative Again

By Andrey Sychev and Alessandro Parodi

(Reuters) – New car sales growth in Europe turned negative again in November, following a slight increase in October. This decline was primarily driven by significant drops in France and Italy, alongside stagnation in Germany, according to industry data released on Thursday.

Electric Vehicle Sales Slowdown

The decrease in electric vehicle (EV) sales was partially balanced by a rise in hybrid-electric vehicle registrations, which surpassed petrol cars for the third consecutive month, as reported by the European Automobile Manufacturers Association (ACEA).

Importance of the Issue

European automakers are grappling with weak demand, high production costs, and the transition to EVs, all while contending with competition from Chinese manufacturers.

Sales Statistics

In November, new vehicle registrations in the EU, Britain, and the European Free Trade Association (EFTA) saw a 2% year-on-year decline, totaling 1.06 million vehicles sold.

Among various brands:
– Volkswagen: +2.8%
– Renault: +9.2%
– Stellantis: -10.8%

Fully electric car (BEV) sales dropped by 9.5% in November, particularly impacted by sharp declines in France and Germany. However, hybrid car (HEV) sales increased by 18.5%, marking three months of growth.

Tesla and SAIC Motor, both affected by new EU tariffs on Chinese-made cars, experienced sales declines of 40.9% and 7.8%, respectively.

Electrified vehicles (BEVs, HEVs, and PHEVs) comprised 55.8% of passenger car registrations in November, compared to 51.8% the previous year.

Industry Quotes

As EU’s carbon dioxide emission reduction targets approach next year, ACEA has called for a regulatory review and is engaging in discussions with EU lawmakers. ACEA Director General Sigrid de Vries remarked, "The transition was worked out on paper. On paper, it may be picture perfect, but reality is different."

She also noted challenges within Europe, stating, "We have very costly energy and electricity prices. We don't have the raw materials and the supply chain that we need for electrification yet in Europe itself."

Contextual Note

On December 11, ACEA appointed Mercedes Chairman Ola Källenius as its new president starting January 1, and approved Stellantis's return to the organization from next year.

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