Electrified Vehicles Drive European Market Growth as Chinese Brands Expand
By Amir Orusov
Electrified Vehicle Demand Powers European Auto Market Surge
June 23 (Reuters) – The European automotive market continued its upward trajectory in May, propelled by strong demand for electrified vehicles, which offset significant declines in traditional petrol and diesel sales and enabled Chinese brands to strengthen their presence, according to data released Tuesday by the European Automobile Manufacturers’ Association (ACEA).
Market Performance and Registration Trends
Car registrations across the European Union, the UK, and the European Free Trade Association increased by 3.6% in May, reaching 1,152,523 units. For the January-to-May period, total registrations rose 4.5% compared to the same timeframe in 2024.
Electrified Vehicle Growth Outpaces Traditional Segments
Battery-electric (BEV), plug-in hybrid (PHEV), and hybrid vehicle registrations surged by 39.1%, 13.2%, and 8.2%, respectively, collectively representing over two-thirds of all new vehicles registered in May. The association attributed this momentum to sustained consumer interest in electrified technologies, supported by updated tax incentives and government-backed purchase programs.
Legacy European Carmakers Face Declines
Traditional automakers experienced notable declines. Registrations for Renault, Stellantis, and Volkswagen fell by 1-3%, reflecting challenges in adapting to the shifting market dynamics and increased competition.
Chinese Automakers Achieve Record Growth
Chinese manufacturers marked substantial gains, with Leapmotor’s sales skyrocketing by 465.1%, followed by Chery and BYD, which increased by 244.1% and 136.6%, respectively. Geely and SAIC also saw strong growth, rising 12.6% and 13.9% over the same period.
Tesla’s Robust Recovery Continues
Tesla’s resurgence persisted for a fourth straight month, with registrations climbing 107.9% to 28,610 units, signaling a strong rebound following over a year of declining sales.
(Reporting by Amir Orusov; Editing by Matt Scuffham)
