ACEA Reports 5.2% Drop in EU New Car Sales in March Due to Early Easter

New car sales in the European Union took a hit in March, with a 5.2% year-on-year decline, the largest drop since July 2022. This downturn was attributed to early Easter holidays and a general market slowdown, according to Europe’s auto industry body.

Major European carmakers like Volkswagen and Stellantis have already warned of a tough year ahead in 2024. Factors contributing to this challenging market environment include weak global demand for electric vehicles (EVs), increased competition from Chinese manufacturers, rising cost pressures, and geopolitical tensions.

Data from the European Automobile Manufacturers Association (ACEA) revealed that car registrations fell across key EU markets in March. Germany saw a 6.2% decline, Spain 4.7%, Italy 3.7%, and France 1.5%.

While sales of battery electric cars dropped by 11.3%, hybrid-electric vehicle registrations saw a 12.6% increase, driven by strong performance in France and Italy. The sale of hybrid electric cars, considered a middle ground between combustion and electric vehicles, has been steadily rising in the EU, capturing a market share of 29% in March.

Overall, electrified vehicles, including fully electric models, plug-in hybrids, and full hybrids, accounted for 49.1% of all new passenger car registrations in March, up from 45.5% the previous year.

Despite the challenges faced by major carmakers like Volkswagen, Stellantis, and Renault, Toyota saw a sales increase of 18.4% in the EU. However, electric car company Tesla recorded a significant drop of 30.4% in sales compared to the previous year.

Overall, new vehicle registrations in the EU, Britain, and the European Free Trade Association (EFTA) fell by 2.8% in March, totaling 1,383,410 vehicles.