Electric Cars Overtake Diesel in European New Car Sales: Industry Insights and Market Trends

2023-07-19 13:47:41

Electric cars overtook diesel in June for the first time in new car sales in Europe, the manufacturers’ association (ACEA) announced on Wednesday. However, gasoline-powered cars continue to dominate the overall market.

With 158,000 vehicles sold, electric vehicles have increased from 10.7 to 15.1% market share in one year. Sales have particularly exploded in the Netherlands, Germany, France and Belgium. This progression is driven in particular by Tesla, which has cut its prices: one in five electric cars sold in Europe in the first half of the year bears the capital T badge.

Diesel continues to decline despite surges in Germany and Central Europe. It now accounts for 13.4% of sales. Hybrid cars have also made strong progress and represent 24.3% of the market, driven by Germany, France and Italy.

Gasoline still majority

Separately, sales of rechargeable hybrids (which can be plugged into a socket or a terminal) are down over one year, with 7.9% of the market.

However, gasoline remains the main energy in the EU with 36.3% of sales in June, up 11%, with the overall market rebound.

Growing sector

More broadly, new car sales rebounded in Europe in the first half, with a 17.9% increase over one year. With 5.4 million cars sold, however, the market remains 21% lower than in the first half of 2019, the last year of all records before the Covid.

“The progress of the last few months shows that the European automotive industry is recovering from the logistical problems caused by the pandemic”, underlines the ACEA in a press release.

The European automotive market has started to grow sustainably once more since August 2022, when the Covid crisis, combined with a shortage of parts including crucial electronic components, had dealt it a very hard blow.

ats/juma

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