Gross sales of recent vehicles throughout Europe final yr reached 12.79 million items, exactly three million beneath the 2019 peak however the highest consequence because the COVID pandemic.

The consequence was virtually the identical as 2014’s European market. The principle markets driving the expansion have been the UK, France, Italy, Spain, Belgium, Portugal, Croatia and Cyprus.

“Europe’s automotive market seems to be normalising. Provide chain points are actually largely underneath management, and customers have turn into accustomed to ready longer to obtain new autos. Regardless of this, it’s unlikely we are going to see volumes surpass the 15 million items recorded in 2019. Buying a automobile has turn into costlier, and attitudes to possession proceed to alter,” mentioned Felipe Munoz, world analyst at JATO Dynamics.

Germany’s Volkswagen Group held the most important market share in Europe in 2023, rising to 25.8% from 24.7% in 2022.  Its Volkwagen, Audi, Skoda, Seat and Cupra manufacturers all gained market share final yr, which JATO mentioned was a results of their sturdy EV line-ups and enticing offers for older fashions such because the Audi A4, A1, and Q2 and the Seat Ibiza.

The Tesla Mannequin Y grew to become Europe’s most-registered mannequin in 2023 – each the primary time a non-European mannequin and an electrical mannequin have led the rankings – due to the Tesla Mannequin Y’s dominance of recent automobile markets in Norway, Denmark, Sweden, Netherlands, Belgium, Switzerland, and Finland.

JATO mentioned a lot of the expansion in Europe’s new automobile market in 2023 was pushed by BEVs (battery electrical autos), which accounted for 15.7% of complete market share with 2,011,209 items registered. This marks a brand new excessive for the class, and cements Europe’s standing because the world’s second largest marketplace for BEVs, behind China (~5 million items) however forward of the US (1.07 million items).

However attracting extra personal patrons to spend their very own cash on a BEV remains to be an industry-wide problem. Solely 39% of total BEV registrations have been made by personal patrons, down 9 factors from 2022

“Though progress stalled in November after which fell sharply in December, incentives are persevering with to assist BEV uptake throughout Europe. However when wanting on the knowledge by registration sort, it turns into clear that incentives are solely at present interesting to firms, fleets and leases,” Munoz mentioned.

“The dearth of curiosity from personal patrons is a significant hurdle for the {industry} to beat. Gross sales to non-public people are usually essentially the most worthwhile for carmakers, and so it’s crucial that they do extra to draw this kind of buyer.”

The variety of Chinese language manufacturers now promoting new vehicles in Europe elevated from 23 to 30 throughout 2023, in response to JATO, nevertheless solely eight of those achieved greater than 1,000 registrations and MG accounted for 72% of all Chinese language manufacturers’ 321,918 new automobile gross sales in 2023.

“Though Chinese language manufacturers recorded a report market share of two.6% in 2023, up from 1.7% in 2022, claims of an “invasion” have been overstated,” mentioned Munoz.

He added: “MG is benefitting from providing aggressive and interesting merchandise made in China however making use of its standing as a legacy British model.”