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, after showing meager growth in October, weighed by sharp declines in France and Italy, and stagnation in Germany, industry data showed on Thursday.

The slowdown in electric vehicle (EV) sales was only partly offset by the growth of hybrid-electric car registrations, which topped petrol for a third consecutive month, according to the European Automobile Manufacturers Association (ACEA).

Why It’s Important

European automakers are struggling with weak demand, high production costs, and managing the shift to EVs while trying to fend off competition from China.

By the Numbers

The number of new vehicles registered in November in the EU, Britain, and the European Free Trade Association (EFTA) fell 2% year-on-year to 1.06 million.

Among brands, registrations in the EU, Britain, and EFTA at Volkswagen rose 2.8% and by 9.2% at Renault, while they fell by 10.8% at Stellantis.

Sales of fully electric cars (BEVs) were down by 9.5% in November in the EU, driven by sharp declines in France and Germany, while those of hybrid cars (HEVs) rose by 18.5%, marking their third month of growth.

Tesla and SAIC Motor, which became subject to new EU tariffs on Chinese-made cars from November, saw sales in the bloc decline by 40.9% and 7.8%, respectively.

Electrified vehicles – either BEV, HEV, or plug-in hybrids (PHEV) – accounted for 55.8% of passenger car registrations in November, up from 51.8% the previous year.

Quotes

As the EU’s new carbon dioxide emission reduction targets loom next year, ACEA mentioned that a review of the regulation is necessary, and discussions with EU lawmakers are ongoing.

“The transition was worked out on paper. On paper, it may be picture perfect, but reality is different,” ACEA Director General Sigrid de Vries told Reuters on Tuesday.

“In Europe, we have a couple of issues. 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,” she added.

Context

On Dec. 11, ACEA appointed Mercedes Chairman Ola Källenius as its new president effective Jan. 1, and approved the return of Stellantis to the organization from next year.

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