EU Car Market Drops in December after 16 Months of Growth

In December 2023, the EU car market experienced a 3.3% decline, in December, posting 867,052 units in sales. The stunning drop can be attributed to the high baseline performance in December 2022, according to The European Automobile Manufacturers’ Association (ACEA).* December also marked the first month of contraction after 16 consecutive months of growth. Notable increases were observed in top markets such as France (+14.5%) and Spain (+10.6%). In contrast, the German car market declined by a significant 23% in December.

During 2023, the EU car market concluded with a 13.9% expansion compared to 2022, reaching a full-year volume of 10.5 million units. All EU markets grew in the past year except for Hungary (-3.4%). Double-digit gains were recorded in most markets, including three of the largest: Italy (+18.9%), Spain (+16.7%), and France (+16.1%). Conversely, Germany recorded a more modest 7.3% year-on-year increase, influenced by its weaker December performance.

Ken Zino of AutoInformed.com on EU Car Market Drops in December after 16 Months of Growth

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EU Car Registrations By Power Source

Battery-electric cars established themselves as the third-most-popular choice for buyers in 2023. In December, market share surged to 18.5%, contributing to a 14.6% share for the full year, surpassing diesel, which remained steady at 13.6%. Petrol (aka gasoline Yank) cars retained their lead at 35.3%, while hybrid-electric cars took second spot, commanding a 25.8% market share. This appears to AutoInformed to be part of a global trend with strong hybrid sales occurring as the slow transition to pure EVs stumbles on with political and demand wildcards appearing in various economies with shifting incentives, regulations and trade barriers or policies.

Electric cars

In December 2023, new battery-electric car sales declined for the first time since April 2020 (during the COVID-19 pandemic’s peak), dropping by 16.9% to 160,700 units. ACEA said this decrease can be attributed to a comparatively robust performance in December 2022 and a significant downturn in Germany (-47.6%), the largest market for EVs. Despite this, the overall volume for the full year of 2023 surpassed 1.5 million units, reflecting a noteworthy 37% increase compared to 2022. The battery-electric car market share reached 14.6% in 2023.

In December, new EU registrations of hybrid-electric cars surged by 26%, driven by significant gains in three of the four largest markets: Germany (+38%), France (+32.6%), and Spain (+24.3%). This contributed to a cumulative 29.5% increase in 2023, resulting in more than 2.7 million units sold in 2023 – 2a 5% share of the EU market.

In contrast, sales of plug-in hybrid electric cars ended the year on a downward trend, declining by a significant 40.2% to 71,546 units in December 2023. Increases in key markets, Belgium (+19.7%) and France (+17.3%), were insufficient to offset the substantial downturn in Germany (-74.4%), the largest market for plug-ins. As a result, the EU plug-in hybrid electric car market decreased by 7% compared to 2022 and now represents a 7.7% market share.

Petrol and diesel cars

In December 2023, the EU petrol (gasoline) car market grew by 5.1%, driven by key markets –  Italy (+24.9%) and Germany (+16.1%). This led to a total of 3.7 million units sold, a 10.6% increase compared to the previous year. Despite maintaining the lead with a 35.3% market share throughout 2023, petrol cars experienced a slight decline from 36.4% in 2022.

The EU diesel car market continued its downward curve in December, contracting 9.1%. The decline was evident in several key markets, including three of the largest: Spain (-26.5%), France (-22.2%), and Italy (-19.7%). However, Germany diverged from this trend with 10.3% growth. In 2023, diesel car sales reached 1.4 million units, accounting for a market share of 13.6%, declining from 16.4% in 2022.

About the EU automobile industry

  • 9 million Europeans work in the automotive sector
  • 3% of all manufacturing jobs in the EU
  • €392.2 billion in tax revenue for European governments
  • €101.9 billion trade surplus for the European Union
  • More than 7% of EU GDP generated by the auto industry
  • €59.1 billion in R&D spending annually, 31% of EU total

AutoInformed on

*ACEA: The European Automobile Manufacturers’ Association (ACEA) represents the 14 major Europe-based car, van, truck and bus makers: BMW Group, DAF Trucks, Daimler Truck, Ferrari, Ford of Europe, Honda Motor Europe, Hyundai Motor Europe, Iveco Group, JLR, Mercedes-Benz, Renault Group, Toyota Motor Europe, Volkswagen Group, and Volvo Group. Data source is ACEA, based on aggregated data provided by national automobile associations, ACEA members and S&P Global Mobility. Some of the interpretations are AutoInformed’s.

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