In May 2023, the European automotive market saw a significant increase in new car registrations, up 18% on the same period last year. This increase can be attributed to increased demand for electric vehicles, particularly Teslas, which have overtaken the overall market. The rise of battery-electric automobiles, such as the Tesla Model Y built at the Gigafactory in Berlin, contributed to this increase. Let’s take a closer look at this growing trend in the European automotive industry.
European drivers are open to electric vehicles as their next car of choice
According to a recent pan-European survey carried out by a leading car manufacturer, 70 European drivers are ready to consider an electric vehicle (EV) as their next car. This trend is mainly due to the environmental benefits offered by zero-emission vehicles. According to the survey results, most European EV drivers (89%) are satisfied with their electric driving experience, which exceeded their expectations. This encouraging comment reinforces the growing interest in EVs.
Europe has become a thriving market for electric vehicles. Although its population is smaller than that of China and the USA, Europe’s higher average incomes make EVs more affordable for a large proportion of the population. Several European countries, including the UK, have strict plans in place to phase out new fossil-fuel vehicles and implement stringent emissions limits in major cities. These regulatory initiatives offer residents additional incentives to switch to electric vehicles.
Strong growth in electric vehicle sales
Sales of battery-electric vehicles jumped by an impressive 66% to 170,389 units. This increase in demand for electric cars is a key factor in the overall growth in new vehicle registrations.
Tesla sales rose dramatically in May 2023, with 29,600 vehicles sold. This statistic reflects a staggering 1,920.5% increase on May 2022 sales of 1,465 units. Tesla sold 138,294 units from January to May 2023, a significant 121.8 ‘year-on-year increase.
Trend towards electrification in Europe
Battery electric vehicles account for 14% of new registrations. Electric vehicles are on the rise in the European market, accounting for around 14 es of new vehicle registrations in the first five months of 2023.
Sales of battery electric vehicles exceeded 730,000 units, representing a substantial 40% increase on the same period last year.
Meeting supply chain challenges
The Volkswagen Group, Europe’s largest carmaker, saw its sales increase by 20%. Similarly, Stellantis, another major competitor in the market, saw its sales increase by 0.5%. European carmakers have overcome long-standing supply chain problems, enabling them to increase vehicle production. This has led to long-term growth in new vehicle registrations. While supply chain issues have eased, customers are once again faced with rising living costs and electricity bills. This could jeopardize the automotive industry’s upward trajectory.
The European automotive sector has seen a significant increase in new car sales, mainly due to the growing demand for electric vehicles. Tesla’s exceptional sales have played a key role in this expansion.
Source : https://europe.autonews.com/automakers/europe-sales-jump-18-may-ev-demand-booms
