European Car Sales Rise For Eight Consecutive Months In March And Record Biggest Growth In Nearly Two Years, And On Track To Exceed 10 Million Units In 2023

According to data released by the European Automobile Manufacturers Association (ACEA), in March, the number of new car registrations in Europe was 1.42 million units, a year-on-year increase of 26%, maintaining growth for eight consecutive months. Automakers are benefiting from orders piling up at the height of the supply crisis and weak sales in the same period last year. European car sales posted their biggest jump since May 2021 as supplies of key components such as semiconductors continued to improve.

From the perspective of the market, in March, sales in more than half of European countries achieved double-digit year-on-year growth. Among the five mainstream auto markets in Europe, Spain (+66.1%) and Italy (+40.7%) had the largest year-on-year growth in sales, while France (+24.2%), the United Kingdom (+18.2%) and Germany (+16.6%) recorded slightly smaller growth.  In the first quarter of 2023, the number of new car registrations in Europe reached 3.236 million units, a year-on-year increase of 17.5%, thanks to the solid sales performance in the previous three months. Among the five major European markets, Spain (+44.5%) saw the largest increase, followed by Italy (+26.2%), the United Kingdom (+18.4%), France (+15.2%) and Germany (+6.5%). In the absence of special circumstances, the sales of new cars in Europe this year will most likely exceed 10 million units.

In terms of the fuel type of new cars, in March, sales of pure electric vehicles in Europe reached 220,757 units, a year-on-year increase of 43.2%; sales of plug-in hybrid electric vehicles rose slightly by 5.4% year-on-year to 99,073 units. Gasoline vehicles are still the most preferred models in the European market, with sales up 26.3% year-on-year to 536,171 units. In the EU market, gasoline vehicles still maintain the largest market share of 37.5%.

From January to March this year, sales of pure electric vehicles in Europe reached 433,298 units, a year-on-year increase of 33.2%, but sales of plug-in hybrid electric vehicles fell slightly by 2.7% to 228,068 units. Judging from the current trend, gasoline vehicles are still the favorite of European consumers, but the popularity of pure electric vehicles in the European market is also accelerating. In addition, sales of plug-in hybrid electric vehicles in the European market have started to weaken slightly due to the removal or reduction of subsidies in countries such as Germany.