The European car market faced its first setback of the year in March, marked by a -5.2% contraction in new car registrations, according to the latest figures released by the European Automobile Manufacturers’ Association (ACEA). This decline, following the growth experienced in January and February, reflects the challenging conditions gripping the industry amidst ongoing political uncertainty.
Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA), expressed disappointment over the downturn. Major markets across the EU, including Germany (-6.2%), Spain (-4.7%), Italy (-3.7%), and France (-1.5%), experienced declines in new car registrations in March. This contrasts with the solid growth witnessed in the first quarter, where car registrations increased by 4.4% in the EU, with notable gains in Italy (5.7%), France (5.7%, Germany (4.2%), and Spain (3.1%).
The shift in power sources is notable, with battery-electric car registrations witnessing an -11.3% decline in March, leading to a decrease in market share from 13.9% to 13%. However, countries like Belgium (+23.8%) and France (+10.9%) saw increases in battery-electric car registrations. Hybrid-electric cars experienced a rise of 12.6%, particularly in France (+29.6%) and Italy (+8.3%), while plug-in hybrid registrations fell by -6.5%, indicating a trend towards hybrid electric vehicles among consumers.
The decline in petrol car sales was significant, with a -10.2% drop observed across the EU. France (-17.7%), Spain (-10.1%, and Germany (-3.4%) were among the countries affected, while Italy saw growth in petrol sales but a decline in diesel.
Diesel cars saw an even steeper decline of -18.5% in March, with major markets like France, Spain, Italy, and Germany recording substantial contractions. This downturn in internal combustion engine (ICE) sales far outweighs the decline in electric sales.
Robinson emphasised the disappointment in the decline of EV sales, especially in light of the recent passage of the Euro 7 bill by the EU parliament. Despite most major markets offering price incentives for EV registrations, March signals a period of tumult for the EV market. As the automotive sector navigates emerging technologies and regulations, the NFDA remains committed to fostering advancement within the industry throughout the 2024.
