EU new-car demand 14% up in 2023

Brussels – The EU new car market finished 2023 strong with a 13.9% year-on-year growth at 10.5 milion units, according to data published by the European Automobile Manufactures Association (ACEA).

With 867,052 units sold, the market, however, recorded a 3.3% decline in the month of December, compared to the year before, ACEA said 18 Jan.

The association linked the drop in December to the high baseline performance in December 2022.

The fall also marked the first month of contraction after 16 consecutive months of growth in the market.

During December, notable increases were observed in top markets such as France and Spain which recorded growths of 14.5% and 10.6% respectively.

By contrast, the German car market declined by a significant 23% year-on-year.

Overall, all markets reported growth during 2023, bar Hungary which saw a 3.4% year-on-year decline.

For the full-year, double-digit gains were recorded in most markets, including three of the largest: Italy at 18.9%, Spain at 16.7%, and France at 16.1%.

Germany recorded a more modest 7.3% year-on-year increase, influenced by a weaker December performance.

In terms of power source, battery-electric cars were the third-most-popular choice for buyers in 2023, with an overall 14.6% share of the market.

Petrol cars retained their lead at 35.3%, while hybrid-electric cars claimed second spot with a 25.8% market share. Diesel cars remained steady at 13.6% market share.