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.

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 barrios or policies.