Europe’s car market in 2023 witnessed a significant revival, with a notable rise in sales.
The increase, 16.9%, brought the total to eight million units. Despite this, sales still trailed 20% behind the pre-pandemic levels of 2019.
The growth followed a recovery from the global semiconductor shortage, a remnant of pandemic-induced supply issues.
Electric vehicles (EVs) were the stars of this resurgence. Battery-electric vehicles (BEVs) saw a 45% sales increase in the first half of 2023 across the EU, EFTA, and the UK.
This surge was fueled by innovations in EV technology and growing consumer preference for sustainable transport.
Leading the EV charge were Tesla, BMW Group, and China’s SAIC Motor. Tesla’s Model Y and Model 3 sales tripled, though the company faced stiff competition from larger groups like Volkswagen and BMW.
The BMW Group experienced a 53% increase in BEV sales, and SAIC Motor’s brands, MG and Maxus, also achieved significant growth.
Tesla’s Model Y, aiming to top Europe’s registrations in 2023, recorded 209,000 units Jan-Oct, signaling a market shift.
Germany, the largest EV market in Europe, faced a decline due to economic uncertainties and the cessation of EV subsidies.
However, a market rebound is anticipated by the year’s end, with EVs expected to constitute over 25% of total car sales.
This reflects a broader shift towards eco-friendly consumer choices, prompting the automotive industry to adapt to changing preferences and technology.