EU new car demand expands for 10th consecutive month

Brussels – The EU car market saw a significant increase in passenger car demand in May, with nearly 1 million units registered during the month.

Marking the 10th consecutive month of growth, May results are 18.5% higher compared to the year before, said the European Automobile Manufacturers’ Association (ACEA) 21 June.

All of EU’s four major markets posted year-on-year improvements, with the strongest gains in made in Italy at 23.1%, followed by Germany at 19.2%, and France at 14.8%.

Over the first five months of the year, the EU new car market grew 18% year-on-year with 4.4 million registered cars, but was still down 23% compared to 2019 levels.

In the five-month period, most markets, including the major four, reported double-digit gains led by Spain at 26.9% and followed by Italy at 26.1%, France at 16.3%, and Germany at 10.2%.

According to ACEA, the market was buoyed by high demand for battery electric cars during the month, which saw the market share of vehicle type increase from 9.6% to 13.8%.

New registrations of battery electric cars saw a significant boost, rising nearly 80% year-on-year to reach 129,847 units.

The segment recorded double- and triple-digit percentage gains in most markets, with The Netherlands reporting a 118.4% year-on-year increase.

Demand for the vehicle type also increased significantly in Sweden, France and Germany which posted respective increases of 82.6%, 48.7%, and 46.6%.

Over the five-month period, the segment saw a year-on-year increase of 50.5%, with over half a million units sold.

Hybrid electric cars were second-most popular choice for new car buyers, accounting for almost a quarter of the market. However, petrol cars continued to have the largest share of the market at 36.5%.