Nearly half of new passenger cars in EU electrified
Nearly half of all new passenger cars registered in the European Union from January to November 2023 were electrified, according to recent data. In November alone, these vehicles crossed the halfway mark of total registrations.
The European Automobile Manufacturers Association (ACEA) reported that electrified vehicles, including fully electric models, plug-in hybrids, and full hybrids, made up 47.6% of new car registrations, a significant increase from 43% in the same period last year.
Electric and Hybrid Vehicles Dominate Growth
The EU experienced a 6.7% increase in new car registrations in November, marking the 16th consecutive month of growth. This rise included a 13.3% year-on-year increase in electric vehicle registrations. While petrol car registrations grew by 4.2%, diesel car registrations saw a decline of 10.3%. Notably, registrations of fully electric cars rose by 16.4% from the previous year.
However, Germany, Europe's largest electric vehicle market, observed a 22.5% drop in these registrations. Despite this, hybrid-electric vehicles remained the most popular choice among consumers, witnessing a 28.7% surge, even as demand for plug-in hybrids declined by 22.1%.
Challenges and Market Dynamics
Despite the growing popularity of electric vehicles, the ACEA warned earlier in December that Europe risks falling behind other regions without a robust EU industrial strategy, especially in light of China's dominance in the supply chain and U.S. incentives for automakers. Some industry leaders and analysts have noted a plateau in electric vehicle demand.
Volkswagen and Mercedes-Benz have expressed concerns about the evolving market dynamics, citing unexpected demand patterns and supply chain issues. In contrast, Tesla experienced a significant boost in November, accounting for nearly 22% of all fully electric car registrations in the EU. Overall, the number of new vehicles registered in November across the EU, Britain, and the European Free Trade Association (EFTA) grew by 6% to 1.08 million vehicles.
