European Car Market Sees Growth Amid Hybrid Surge, Renault Overtakes Stellantis

New car sales in Europe rose 0.9% in 2024, driven by hybrid vehicle registrations, which outpaced petrol cars for the fourth straight month in December, according to the European Automobile Manufacturers Association (ACEA). Renault's market share surpassed Stellantis for the first time since Stellantis’ creation in 2021.

December sales across the EU, Britain, and the EFTA climbed 4.1% year-on-year, reaching 1.1 million units. Hybrid electric vehicle (HEV) registrations surged 33.1%, and plug-in hybrids (PHEVs) grew 4.9%. However, fully electric vehicles (BEVs) dropped 10.2%. Electrified vehicles accounted for 57.7% of December passenger car registrations, up from 53.3% the previous year.

Renault recorded a 16.6% increase in registrations, boosting its market share to 11.9%. Stellantis saw a 6.7% drop, lowering its share to 11.6%. Volkswagen grew by 4.9%. Spain led growth with a 28.8% sales increase, while Germany and Italy declined by 7.1% and 4.9%, respectively.

Despite hybrid growth, the EV transition remains challenging. Carmakers criticize high production costs, rising competition from China, and stricter CO2 regulations. ACEA president Ola Kaellenius noted EV demand has underperformed expectations and urged policymakers to support the industry.

The European car market's shift towards electrification highlights the growing dominance of hybrids but underscores the hurdles in fully transitioning to EVs. The evolving landscape demands innovative strategies to balance environmental goals with market realities.