The European car market grew by 13.9% in 2023. A total of 10.5 million new cars appeared on European roads. All European markets are growing, with the exception of Hungary. In the Netherlands, 30.8% of new vehicles are fully electric, while 37.1% are hybrids.
This is according to figures from ACEA, the European trade association for car manufacturers. Demand for cars rose 3.3% in December 2023 compared to the same period a year earlier. ACEA attributes this drop mainly to a very strong December 2022. This is the first month of contraction in 16 consecutive months.
With the exception of Hungary, all European markets are growing. Leading the way are Italy (18.9%), Spain (16.7%) and France (16.1%). Germany experienced relatively limited growth of 7.3% year-on-year. ACEA attributes this to weak performance in the German market in the month of December.
Fuel engine demand remains high
With all the focus on electric vehicles, charging stations and other related topics, motorists may seem particularly interested in electric driving at the moment. However, ACEA's figures paint a different picture. For instance, 35.3% of vehicles sold in the EU last year were equipped with a fuel engine. Hybrid electric vehicles (HEV) are in second place, accounting for 25.8% of all sales. Diesel still accounts for 13.6%.
In the Netherlands, the market is divided differently. For example, 30.8% of the cars sold are fully electric. Petrol cars follow with 30.4%. HEVs are also popular; 24.4% of vehicles sold in the Netherlands in 2023 were HEVs. Plug-in hybrids are less popular at 12.7%. Diesel cars accounted for just 1.1% of new cars sold in 2023.
Dip in demand for EVs
At European level, demand for EVs fell in December 2023 for the first time since April 2020. Demand fell by 16.9% to 160,700 vehicles. ACEA attributes the contraction partly to the relatively strong market performance in December 2022. On the other hand, demand in Germany - the largest EU market for EVs - fell 57.6%.
However, if we look at the whole of 2023, a different picture emerges. A total of some 1.5 million EVs were delivered to the European market last year. This represents a 37% growth compared to 2022. The segment accounts for 14.6% of the total market.
2.7 million HEVs sold
Demand for HEVs grew by 29.5% at European level in 2023. A total of 2.7 million HEVs were sold in the European market, making the segment account for more than a quarter of the market. Among others, demand increased in Germany (+38), France (+32.6%) and Spain (+24.3%).
Demand for plug-in hybrids actually fell by 7%. The segment accounted for 7.7% of the market. In several markets including Belgium and France, demand increased, by 19.7% and 17.3% respectively. However, this is insufficient to offset the sharp contraction in German demand for plug-in hybrids (-74.4%).
Number of petrol cars sold rises
Although the EU is committed to a transition to electric driving, the number of petrol cars sold rose by 10.6% to 3.7 million units in 2023. This means the segment still accounts for 35.3% of the market. However, this is slightly less than in 2022, when petrol cars had a 36.4% market share.
Demand for diesel vehicles falls 9.1% at European level. The contraction is biggest in Spain (-26.5%), France (-22.2%) and Italy (-19.7%). In Germany, demand for diesel cars actually increased by 10.3%. A total of 1.4 million diesel cars were sold in 2023, accounting for 13.6% of the market.
Author: Wouter Hoeffnagel
Image: Goran Horvat via Pixabay
