The European car market is almost at a standstill. In July 2024, new car registrations in Europe increased by 3.9%, exceeding 6.5 million units, but growth remains modest and uncertain. According to ACEA data, registrations recorded a limited increase of 0.2%, with mixed performances in the main markets: Italy (+4.7%) and Spain (+3.4%) achieved positive results, while France (-2.3%) and Germany (-2.1%) suffered contractions.
In the largest EU markets, Italy (+5.2%), Spain (+5.6%), Germany (+4.3%) and France (+2.2%) saw modest growth. However, battery electric cars accounted for just 12.1% of the market, down from 13.5% the previous year, while hybrid electric vehicles increased their share from 25.5% to 32%. The combination of petrol and diesel cars fell to 46%, from 50% last year, with petrol car sales down 7% to 33.4% of the market.
The Stellantis group, in particular, recorded a decline in registrations, with 152,830 vehicles sold in July, 4.8% less than in the same month of 2023, and a reduction in market share from 15.7% to 14.9%.. In the first seven months of 2024, the group’s registrations fell by 0.5%, with a market share of 16.4% against 17.1% the previous year.
The Promotor Study Centre highlights thatdespite EU GDP having recovered pre-crisis levels, Registrations in the EU, EFTA and UK remain well below 2019 levels, down 22.9% in July and 19% in the first seven months of 2024. Among the causes of the crisis, the CSP cites the increase in car prices and the European policy of abandoning sales of vehicles with internal combustion engines starting in 2035. Furthermore, the slowdown in the growth of electric cars, particularly evident in Germany where the share fell from 20% to 12.9%, is a decidedly negative signal for the sector.
Gian Primo Quagliano, president of the Centro Studi Promotor, attributes part of the crisis to EU policies that have required heavy investments in the automotive industrybut without meeting enough public interest in electric vehicles. This has forced states to introduce incentives to stimulate demand, while creating room for strong penetration of Chinese electric cars into the European market. In response to this penetration, the EU has increased tariffs on Chinese car imports, but this could trigger retaliatory tariffs on European cars exported to China, hitting an already stressed sector. If this were to happen, the European car industry could face further difficulties, further exacerbating the ongoing crisis.
