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EU new car sales rise 4.3% in June, industry body ACEA says
Global Banking & Finance Review®
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By Greta Rosen Fondahn and Alessandro Parodi
(Reuters) -New car sales in the European Union rose 4.3% in June to their highest since July 2019, driven by an uptick in major markets Italy, Germany, and Spain, while registrations of battery electric cars fell marginally, data from Europe’s auto industry body showed on Thursday.
The European Automobile Manufacturers Association (ACEA) said a rise in registrations of battery electric cars in Belgium and Italy, of 50.4% and 117.4% respectively, failed to offset double digit declines in Germany, the Netherlands and France.
WHY IT’S IMPORTANT
Top European carmakers are betting on car sales to pick up over the year, despite cooling electric vehicle (EV) demand after several years of strong growth and warnings that the global market will be tough.
BY THE NUMBERS
Sales of battery electric and plug-in cars in June fell by an annual 1% and 19.9% respectively in the EU, while those of hybrid-electric cars grew 26.4%, the ACEA data showed.
In the first six months of the year registrations of battery electric cars rose 1.3%.
EVs – whether fully electric, plug-in hybrids or full hybrids – sold in the EU accounted for 50% of all new passenger car registrations in June, up from 47.5% a year earlier.
Car registrations at Europe’s three largest carmakers Volkswagen, Stellantis, and Renault grew by 4.7%, 0.4% and 6.2% respectively in June.
CONTEXT
Germany, the bloc’s largest EV market, in December brought an early end to subsidies for buying EVs as part of a last-minute 2024 budget deal.
GRAPHICS
KEY QUOTES
Germany is the sick man of Europe when it comes to electric cars,” said Lucien Mathieu, cars director at European campaign group Transport & Environment (T&E), adding that markets with predictable incentives for EV adoption were “reaping the rewards.
(Reporting by Greta Rosen Fondahn and Alessandro Parodi; Editing by Kirsten Donovan)
A battery electric car is a vehicle that is powered entirely by electricity stored in batteries, with no internal combustion engine. They are known for being environmentally friendly and produce zero tailpipe emissions.
A hybrid-electric car combines a conventional internal combustion engine with an electric propulsion system. This allows for improved fuel efficiency and reduced emissions compared to traditional vehicles.
The European Automobile Manufacturers Association (ACEA) is a trade organization representing the interests of car manufacturers in Europe. It provides data and insights on the automotive industry, including vehicle sales and trends.
Electric vehicle demand is significant as it reflects consumer preferences for sustainable transportation options. It impacts the automotive industry's direction, influencing manufacturers' investments in technology and infrastructure.
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