By Alessandro Parodi and Greta Rosen Fondahn

(Reuters) – Hybrids have surpassed petrol-powered vehicles in EU new car sales for the first time in September, representing 32.8% of total sales, according to data from Europe's auto industry body.

Total car sales in the EU fell by 6.1% year-on-year, marking a decline for two consecutive months, the first time since July 2022, as major markets like Germany, France, and Italy stagnate.

WHY IT'S IMPORTANT

The sales of hybrid electric vehicles (HEV) have risen in the EU recently, seen as a cost-effective compromise between all-combustion and all-electric vehicles. In contrast, sales of fully electric (BEV) and plug-in hybrid (PHEV) vehicles have slowed this year due to differing green incentive policies across European nations, alongside heavy tariffs aimed at preventing the influx of inexpensive Chinese EVs.

BY THE NUMBERS

Electrified vehicles (BEV, PHEV, or HEV) accounted for 56.9% of all new passenger car registrations in September, a rise from 50.3% the previous year.

Sales of battery electric cars increased by 9.8% year-on-year, yet year-to-date sales have dropped by 5.8%.

Hybrid electric vehicle sales rose by 12.5% year-over-year, while petrol vehicle sales fell by 17.9%, resulting in a market share of 29.8% in September.

Registrations for Volkswagen rose by 0.3%, while Stellantis saw a decline of 27.1% and Renault a decline of 1.5%.

QUOTES

"Today's numbers illustrate that we're still a long way away from the thriving EV market Europe needs," said Sigrid de Vries, ACEA Director General.

"This is not the steady and reliable market growth that is needed for a successful green mobility transformation."

CONTEXT

Volkswagen, Stellantis, and Renault are facing challenges with weak demand while simultaneously contending with competition from China.

Earlier this month, EU member states narrowly approved import duties on Chinese-made EVs up to 45%, intended to counter what they claim are unfair subsidies provided to Chinese manufacturers by Beijing, which denies such claims and has threatened counter-measures.