European Car Market Shows Mixed Signals in July with Growth Amidst Structural Concerns

In Western Europe—comprising the EU, EFTA, and the United Kingdom—a total of 1,085,356 new cars were registered in July, representing a 5.9% increase compared to the same month in 2023. For the first seven months of the year, registrations reached 7,900,877 units, remaining virtually unchanged from the same period last year, according to data from ACEA, the European Automobile Manufacturers’ Association.

ACEA reports that battery electric vehicles (BEVs) captured 15.6% of the market in July, a significant rise from 12.5% a year ago, though still falling short of the levels required for a full transition. Hybrid electric vehicles (HEVs) were the consumer favorite, holding a 34.7% market share.

Stellantis reported sales of 151,391 vehicles in July, a 1.1% decline year-on-year. Its market share dropped from 14.9% to 13.9%. Over the seven-month period, the group’s registrations fell 8.1% to 1,192,746 units, with its market share decreasing from 16.4% to 15.1%.

Despite the recent growth, the Promotor Study Center highlighted a deeper issue, noting the European auto market in July was down a substantial 19% compared to the same period in 2019, a result it described as “disastrous.” The center stated this stands “in sharp contrast with the rest of the world, which has already reached and surpassed pre-pandemic levels.”

The center attributes the “reason for the poor performance of the Western European car market” to the European Union’s energy transition policy. It specifically criticized the EU’s mandate to ban the sale of new internal combustion engine cars from 2035, a policy it claims has not been adopted by any other country except the UK, which “continues to follow the EU’s political orientations on the energy transition.”

While acknowledging a “positive result” for electric vehicle adoption, the center expressed “significant concerns” over the trend in auto production within the EU. Gian Primo Quagliano, president of the Promotor Study Center, endorsed calls from ACEA and CLEPA (the European Association of Automotive Suppliers) for European Commission President Ursula von der Leyen to recalibrate the current CO2 emissions reduction targets. This appeal is based on data showing the EU auto market has accumulated a 19% deficit from its pre-pandemic level, “while the rest of the world has not only recovered but grown by 7.5% in the meantime.”

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