Automobile market of the European Union

Main article: European Union

2023: EU auto sales up 13.9% to 10.55 million units

At the end of 2023, car sales in the European Union increased by 13.9% on an annualized basis, amounting to approximately 10.55 million units. For comparison: in 2022, the number of registrations of new passenger cars in the region was estimated at 9.26 million. Such data are provided in a report by the European Association of Automobile Manufacturers (ACEA), published on January 18, 2024.

It is said that in 2023, almost all EU states demonstrated positive dynamics, despite the difficult macroeconomic situation. Double-digit percent growth was recorded in most markets, including the three largest: Italy (+ 18.9%), Spain (+ 16.7%) and France (+ 16.1%). On the contrary, Germany recorded a more modest increase in sales on an annualized basis - by 7.3%. The decline was demonstrated only by Hungary - minus 3.4% compared to 2022.

In 2023, approximately 1.54 million new electric vehicles were sold in the EU. This is 37% more than in 2022, when the sales of such vehicles were 1.12 million units. The demand for hybrids with the ability to charge the battery pack from the electric network fell by 7% on an annualized basis - from 874.78 thousand to 813.48 thousand units. Sales of conventional hybrids at the same time rose by 29.5%, amounting to 2.72 million units against 2.1 million at the end of 2022.

Sales of the Volkswagen group (including Skoda, Audi, Seat, Cupra, Porsche, etc.) in the EU in 2023 increased by about 18%, reaching 2.75 million units. Stellantis (Peugeot, Fiat, Opel/Vauxhall, Citroen, Jeep, Alfa Romeo, Lancia/Chrysler, etc.) shipments rose 2.9% to 1.88 million units. Renault Group (Dacia, Alpine, etc.) increased sales by 16.9% to 1.15 million units.^[1]

2022

Sales slump to lowest since 1993

On January 18, 2023, the European Association of Automobile Manufacturers (ACEA) released statistics on car sales in the European Union. It is reported that in 2022 the number of vehicle registrations decreased to the minimum value in almost 30 years.

A shortage of electronic components and spare parts had a negative impact on the industry. In general, in 2022, the EU passenger car market decreased by 4.6% - to 9.3 million cars. For comparison: in 2021, the total number of registrations was 9.7 million. The worst result was recorded only in 1993, when sales were estimated at 9.2 million units.

EU car sales fall to lowest since 1993

Among the four largest markets in the European Union, it was only Germany possible to show growth in 2022 - plus 1.1% on an annualized basis: the final result was 2.7 million registered cars. At the same time, a Italy decline of 9.7% was recorded, in France - by 7.8%, in - Spain by 5.4%. In these countries, during 2022, 1.3 million, 1.5 million and 813 thousand cars were sold, respectively.

Sales of the Volkswagen group (Volkswagen, Audi, Skoda, Seat, Porsche and others) in the European Union decreased by 5.2% in 2022 - to 2.3 million units. Stellantis Corporation (Peugeot, Fiat, Citroen, Opel/Vauxhall, Jeep, etc.) sold approximately 1.8 million cars, which is 14.1% less than in 2021. The Renault group (Renault, Dacia, Alpine) reduced sales on an annualized basis by 4.3% - to 985 thousand units. At BMW Group, deliveries fell by 5.1%, amounting to 625 thousand cars. The demand for Mercedes-Benz cars has practically not changed over the year - 549 thousand units. At the same time, Toyota showed an increase of 7.7% - up to 662 thousand cars sold in the EU. Hyundai Group was able to increase sales by 2.6%, selling about 850 thousand cars during 2022.^[2]

June sales decline to 1996 level

Sales of new passenger cars in the EU in June 2022 in annual terms decreased by 15.4% and amounted to 886.51 thousand cars, according to data from the European Association of Automobile Manufacturers (ACEA).

This is the lowest figure for June since 1996. The percentage decline in key markets other than Spain has become double-digit. In Germany, the June sales figure decreased by 18.1%, in Italy - by 15%, in France - by 14.2%, in Spain - by 7.8%.

European Parliament approves ban on cars that do not apply to electric cars and hybrids since 2035

In June 2022, the European Parliament adopted a resolution banning new cars with diesel and gasoline engines in the European Union. Under the initiative, only electric vehicles and vehicles with hybrid powerplants will be sold in Europe from 2035. At the same time, previously registered machines with internal combustion engines can be used further.

Parliamentarians supported the proposal of the European Commission introduced in 2021 to switch to completely "clean," free from carbon dioxide emissions, cars. 339 people voted for the adoption of the project, 249 against, another 24 abstained.

European Parliament approves ban on cars that do not apply to electric cars and hybrids

Some MPs proposed easing the requirement to reduce harmful emissions from 100% to 90%, but did not support the amendment. There were also those politicians, including the former presidential candidate, France the chairman of the "National Association" Marine Le Pen, who criticized the project. According to Le Pen, cars due to the proposed ban can become a luxury in the EU - even the middle class cannot afford them.

The EU Commission has decided to dramatically tighten the limits on car engines as part of its climate protection programme. However, at the meeting, European MPs unexpectedly rejected most of the climate package, including the planned expansion of emissions trading with CO2 certificates for transport and buildings.

Many large automakers strongly support the desire of the EU authorities to accelerate the transition to electric vehicles. Thus, representatives of Ford and Volvo have already publicly supported this decision, and, for example, Volkswagen has repeatedly stated its desire to completely stop producing cars with traditional internal combustion engines by 2030-2035^[3]

2021: Number of passenger cars produced in Europe

Data for 2021

2020

The European car market has experienced the worst year in history

In 2020, it became the worst year in the history of the European car market. Car sales in the EU amounted to 9.94 million units, down 23.7% compared to 2019. This is evidenced by data from the Association of European Automobile Manufacturers (ACEA).

Experts explained the market collapse by the closure of dealerships and other quarantine restrictions in European countries throughout the year due to the outbreak of coronavirus infection (COVID-19). Compared to 2019, the number of registrations of new cars in 2020 decreased by 3 million.

Number of new car registrations in the EU (2019-2020)

Positive sales dynamics for the entire 2020 in relation to 2019 was recorded only in one month - in September: between two waves of COVID-19, vehicle sales in the European Union increased by 3.1%.

The following manufacturers became the leaders of the EU car market at the end of 2020:

• Volkswagen - sold 1,346,999 cars (-24.5% by 2019);
• Renault - 819,009 cars (-22.9%);
• Peugeot - 741,498 cars (-23.2%);
• Mercedes-Benz — 738 236 шт. (-17,3%);
• BMW - 674,654 pcs. (-18.8%).

Ranking of European countries by the number of new car registrations (2019-2020)

According to statistics, at the end of all 2020, all EU countries, without exception, recorded a double-digit drop in sales. Among large markets, Spain recorded the most serious drop in demand for new cars - by 32.3%. In Italy, sales sank by 27.9%, in France - by 25.5%, and in Germany - by 19.1%.

In the UK, which left the EU, 1.63 million new cars were bought over the year, a drop by 2019 - 29.4%.

Weak demand for cars threatens the EU economy as a whole, because its recovery in the second half of 2020 after quarantine and restrictions in the spring largely depended on industry, Bloomberg notes.

We are in a deep crisis. It is more extensive than anything we have encountered in the past, "Pierre-Louis Debard, head of statistics at the French automakers committee (CCFA), said in a conversation with the agency.[4]

Car sales crash due to COVID-19 pandemic

Due to the COVID-19 pandemic in France, Spain, Italy, Germany and the UK, car dealer sales in March 2020 decreased from 40% to 80% (see graph). At the same time, analysts of the company note, global car sales will return to the pre-crisis level no earlier than mid-2021, which is mainly due to a decrease in the purchasing power of the population as a result of the pandemic crisis.

Car sales in the EU countries collapsed in April 2020 by 76.3% in annual terms.

Among companies, the most significant drop in sales in April was noted at the Italian-American FCA Group - by 87.7% - compared to the same month of 2019, to 10.42 thousand cars.

Sales of cars of the German group Volkswagen decreased by 72.7%, to 77.86 thousand cars.

Volkswagen's main competitor in the European market, the French PSA Group, reduced sales by 81.2%, to 36.72 thousand cars.

Another French automaker, the Renault group, recorded a 79% decline in sales, to 27.74 thousand cars.

British-Indian Jaguar Land Rover - by 82.4%,

Korean Hyundai cut sales in the EU in April by 76.1%.

The sale of cars of the German concern BMW Group decreased by 65.3%.

Daimler - by 78.8%, Ford - by 75.9%, Nissan - by 84.5%, Volvo - by 62.9%.

Sales of the Japanese Mazda fell by 81.1%, Toyota - by 74%, Mitsubishi - by 63.3%, Honda - by 83%.

2019: Number of cars per 1000 people

Cars per 1,000 people (World Bank, June 2019):

• UNITED STATES: 837
• Australia: 747
• Italy: 695
• Canada: 670
• Japan: 591
• Germany: 589
• Britain: 579
• France: 569
• Malaysia: 433
• Russia: 373
• Brazil: 350
• Mexico: 297
• Saudi Arabia: 209
• Turkey: 199
• Iran: 178
• SOUTH AFRICA: 174
• China: 173
• Indonesia: 87
• Nigeria: 64
• India: 22

2018

Dynamics of car sales compared to China and the United States

Car sales in China (orange), USA (green) and EU (blue), million pieces

Number of cars per 1000 people

Data for 2018

2015: Sales growth by 9.3% to 13.7 million cars

The number of cars sold in Europe in 2015 increased by 9.3% and amounted to 13.7 million, according to data from the European Association of Automobile Manufacturers (ACEA). Nevertheless, although there is a positive trend in the market, sales in absolute terms remain at a low level, the review notes.

In December 2015, the EU passenger car market showed significant growth (+ 16.6%), during this month 1.1 million cars were sold. The growth continued for the 28th month in a row and in percentage terms became the highest since the beginning of this positive^[5]%.

At the end of 2015, among the five main car markets in the European Union, the demand for cars increased the most in Spain (+ 20.9%) and Italy (+ 15.8%). In France, sales growth was 6.8%, in the UK - 6.3%, in Germany - 5.6%.

In December, there was a positive trend in all major car markets. The largest growth in sales compared to December 2014 was recorded in Spain (+ 20.7%), Italy (+ 18.7%) and France (+ 12.5%), followed by the United Kingdom (+ 8.4%) and Germany (+ 7.7%).

"The car market grew significantly last year, but the cumulative sales indicator returned only to the value of 2010, that is, it was compared with the value immediately after the crisis," the ACEA review said.

Germany retained the lead in sales in 2015 (3.2 million cars), the UK was in second place (2.63 million), and France was in third (1.9 million). They are followed Italy by (1.57 million) and Spain (1.03 million).

Sales of the leader of the European car market, Germany's Volkswagen, rose 4.4% in December and 6.2% since the beginning of the year. However, against the background of the scandal with diesel engines, the company's market share decreased over the past year by 0.7 percentage points to 24.8%. The decline was recorded for the first time since 2007.

French carmaker Peugeot Citroen increased sales in December 2015 by 20.7% and 6% for the year.

Renault increased sales in 2015 by 9.4%, Ford - by 8.6%, Opel - by 2.2%, BMW - by 12.3%, FCA - by 13.6%, Daimler - by 17.7%, Toyota - by 6.9%, Nissan - by 16.3%.

The only automaker whose European sales fell in 2015 was the Japanese Honda, a decrease of 1.4%. Its market share declined to 0.9%.

FCA's Jeep SUV sales jumped 113%.

The drop in Chevrolet registrations (the brand is owned by General Motors) was 90.9%. GM decided a year ago to remove the Chevrolet brand from the European market so as not to create artificial competition for Opel.

Notes