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  • Writer's picturemeowdini
    • May 22
    • 2 min read

European Car Sales Rebound in April, But Electric Vehicle Growth Slows

New car sales in the European Union surged 13.7% in April compared to the same month last year, according to the European Automobile Manufacturers Association (ACEA). This marks the strongest sales jump since October 2023 and comes after a decline in March registrations.


Growth Drivers and Challenges


The increase was fueled by positive trends in major markets like Spain, Germany, France, and Italy. An early Easter also contributed by adding two additional sales days to the month. However, despite the overall rise, there are underlying concerns:

  • Slowing Electric Vehicle Growth: Sales of battery electric vehicles (EVs) grew 14.8% year-over-year, a slower pace than the previous months. This could indicate a potential slowdown in EV adoption.

  • Rising Competition: European carmakers face stiff competition from Chinese manufacturers who are increasingly entering the European market.

  • High Interest Rates: Consumers are grappling with rising interest rates, which can make car loans more expensive and dampen purchasing power.


Electrification Continues, But at a Slower Pace

While overall car sales increased, the growth rate for EVs has slowed down. Hybrid-electric car sales, seen as a bridge between traditional gasoline vehicles and fully electric models, experienced a stronger increase of 33.1%. Electrified vehicles (including full EVs, plug-in hybrids, and full hybrids) still hold a significant share of the market, accounting for 47.8% of all new car registrations in the EU in April, up from 44.1% the previous year.



Performance of Major Automakers


The data shows mixed results for Europe's leading car manufacturers:

  • Volkswagen (VOWG_p.DE): Sales grew by 15.5% in the EU.

  • Stellantis (STLAM.MI): EU sales saw a modest increase of 1.7%.

  • Renault (RENA.PA): EU sales rose by 11.0%.

  • Toyota (7203.T): EU registrations jumped significantly by 47.3%.


Looking Ahead

European carmakers remain optimistic about sales growth for the rest of the year. However, challenges persist, including slower EV adoption, rising competition, and high interest rates. The focus may shift towards more affordable electric models and further development of hybrid options to maintain momentum in the European market.



Source: Reuters

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