European car sales rose slightly in July compared to the same month last year, but the market for electric vehicles (EVs) showed signs of a slowdown, according to JATO Dynamics, a global automotive data provider.
Overall car registrations grew by 1.5% year-on-year, with 1.03 million new units finding homes across 28 European markets. However, the demand for battery electric vehicles (BEVs) dipped, with registrations falling by 6% to 139,244 units. This resulted in BEVs’ market share dropping from 14.6% in July 2023 to 13.5% last month.
Felipe Munoz, Global Analyst at JATO Dynamics, attributed the decline to lingering uncertainty surrounding EV incentives and residual values. “The lack of clarity around the incentives for – and future of – EVs continues to present a barrier to consumers considering an EV,” Munoz explained. “These factors, alongside the low residual value of EVs contributed to the decline seen in July.”
SUVs Reach New Heights
While the EV market faltered, SUVs continued their dominance. These popular high-riding vehicles accounted for a record-breaking 54% of all car registrations in July, with 554,000 units finding buyers. This represents a 6% increase from July 2023. Volkswagen Group held the top spot for SUV sales volume, capturing 26% of the market.
C-SUVs (compact models) were the most sought-after, with registrations reaching 210,600 units, a 3% rise year-on-year. B-SUVs (small models) also experienced significant growth, with a 14% increase to 204,300 units. The demand for larger E-SUVs (executive models) and F-SUVs (luxury models) rose by 23% and 32% respectively, reaching 27,600 and 5,022 units. However, registrations for D-SUVs (midsize models) fell by 7% to 106,500 units.
Munoz commented on the enduring appeal of SUVs: “Consumers in Europe now have access to more choice than ever before, and SUVs are a more comfortable and desirable option for many. This alongside the increasing availability of affordable models is helping consumers to make the switch from traditional segments to SUVs.”
BMW Shocks Tesla for BEV Lead
In a surprising turn of events, BMW outsold Tesla in the BEV market for the first time in July. The German carmaker achieved a 35% year-on-year increase in electric vehicle registrations, compared to Tesla’s 16% decline.
This shift can be partly attributed to the success of BMW’s latest electric offerings, including the iX1, i4, and i5. The new iX2 also made a strong debut, registering over 1,300 units. Notably, BMW’s electric models outsold their direct competitors from Mercedes and Audi.
Tesla’s grip on the BEV market seems to be loosening, with both the Model Y and Model 3 losing ground. The Model Y, previously Europe’s best-selling vehicle, fell to ninth place in the overall vehicle rankings for July.
Dacia Sandero Reigns Supreme
The Dacia Sandero emerged as the most popular car in Europe for July, with registrations surging by 34% to 22,400 units. This placed the budget-friendly hatchback over 3,000 units ahead of the second-best-selling car, the Volkswagen T-Roc. Interestingly, the top 10 best-selling cars were evenly split between SUVs and hatchbacks.
The Volkswagen T-Cross, Toyota C-HR, BMW X1, Peugeot 3008, and Skoda Kamiq were among the other strong performers in July. Meanwhile, some popular models experienced a decline in sales, including the Ford Puma, Fiat Panda, Audi A3, and Kia Picanto.
The Volvo EX30 was the second-most popular EV in July, with nearly 6,600 registrations. Other notable performers in the BEV market included the MG3 (over 4,000 units), Fiat 500e (2,636 units), BMW i5 (2,302 units), Renault Scenic (2,235 units), and Lexus LBX (2,186 units).
