Europe’s auto industry group stated on Thursday that new car sales in the EU decreased by 5.2% year over year in March, which was the largest loss since July 2022 and the first decline of the year. The decline was attributed to early Easter holidays and a slowdown in the market.

Leading European automakers Volkswagen and Stellantis have predicted that the industry will be challenging in 2024 because to persistent cost pressures, geopolitical concerns, growing Chinese competition, and a lacklustre worldwide demand for electric vehicles (EVs).

March car registrations decreased annually in Germany by 6.2%, Spain by 4.7%, Italy by 3.7%, and France by 1.5%, according to figures from the European Automobile Manufacturers Association (ACEA).

According to ACEA, sales of battery electric vehicles decreased by 11.3% from the prior year due to a general market slump, while registrations for hybrid electric vehicles increased by 12.6%, mostly as a result of robust sales in France and Italy.

Sales of electric vehicles have decreased, and as more money is invested in capacity and technological advancements than is needed, more people are choosing not to purchase EVs due to cost and ongoing concerns about infrastructure.

In the European Union, sales of hybrid electric vehicles, which are viewed as a middle ground between all-electric and all-combustion vehicles, have surged recently. As of March, the market share of these vehicles was 29%, compared to 24.4% a year earlier.

It was exclusively revealed by Reuters over two weeks ago that the corporation had abandoned its ambitions for a more affordable electric car.

In March, plug-in hybrids, full hybrids, or completely electric cars made up 49.1% of all new passenger car registrations in the EU, an increase from 45.5% the month before.

The three biggest automakers in Europe—VW, Stellantis, and Renault—saw a decline in car registrations in March of 9.0%, 12.6%, and 2.1%, respectively.

In the same month, Toyota’s sales in the EU increased by 18.4%, whereas Tesla’s sales fell 30.4% from the previous year.

Despite a 10.4% increase in Britain, the number of new cars registered in the EU, the UK, and the European Free Trade Association (EFTA) decreased by 2.8% to 1,383,410 in March, according to ACEA figures.

(Adapted from MarketScreener.com)

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