European Car Sales Decline in November, Driven by France and Italy, Says ACEA

Image Credit: Reuters

New car sales in Europe fell into negative territory again in November, reversing the slight growth seen in October. The decline was largely driven by sharp drops in sales in France and Italy, as well as stagnant performance in Germany, according to data released Thursday by the European Automobile Manufacturers Association (ACEA).

The slowdown in electric vehicle (EV) sales was only partially offset by rising registrations of hybrid-electric cars, which outpaced petrol vehicles for the third consecutive month.

Key Figures

• New vehicle registrations across the EU, Britain, and the European Free Trade Association (EFTA) dropped 2% year-on-year to 1.06 million units.
• Among automakers, Volkswagen’s registrations rose by 2.8%, Renault saw a 9.2% increase, while Stellantis recorded a 10.8% decline.
• Fully electric vehicle (BEV) sales in the EU fell by 9.5%, particularly due to significant declines in France and Germany. Hybrid car (HEV) registrations grew by 18.5%, marking three consecutive months of growth.
• Tesla and SAIC Motor, both impacted by new EU tariffs on Chinese-made cars starting in November, experienced sales declines of 40.9% and 7.8%, respectively.
• Electrified vehicles, including BEVs, HEVs, and plug-in hybrids (PHEVs), accounted for 55.8% of passenger car registrations in November, up from 51.8% in the same period last year.

Challenges for European Automakers

Automakers in Europe are grappling with weak demand, rising production costs, and the complexities of transitioning to EVs while facing intensified competition from Chinese manufacturers.

ACEA emphasized that the EU’s upcoming carbon dioxide emission reduction targets require a regulatory review. ACEA Director General Sigrid de Vries noted, “The transition may look ideal on paper, but reality paints a different picture.”

She highlighted issues such as high energy and electricity costs, and Europe’s lack of raw materials and supply chain infrastructure necessary for electrification.

Leadership Updates

Starting January 1, ACEA will be led by Mercedes Chairman Ola Källenius as its new president. Additionally, Stellantis will rejoin the organization in the new year after a previous exit.

 

 

 

 

 

 

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author.