Steep Decline in European Electric Vehicle Sales in December
European Electric Vehicle Market Faces Significant Decline in 2023
The European electric vehicle (EV) market, a combination of both battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), experienced a 29% year-on-year decline in registrations in 2023, with a total of 294,166 units. This represents the most significant drop in plug-in sales in the past decade.
Despite the decline, the European EV market remains dynamic and poised for future growth. The success of electric mobility in Europe will rely on the continuous navigation through challenges by automakers.
In 2023, Tesla remained Europe's leading EV brand, accounting for 12.1% of all plug-in registrations. BMW was the second-best-selling EV brand, with an 8.8% market share, and Volkswagen (VW) followed closely in third place with an 8.2% share.
The decline in December 2023 was particularly noticeable, with BEVs seeing a 25% decrease, registering 205,922 units, and PHEVs experiencing a 36% fall, with only 88,244 deliveries. This marked the worst performance for PHEVs since June 2019.
However, EVs continued to assert their presence in the overall new-car market, accounting for nearly a quarter of all new registrations in the region in 2023. Despite the December dip, the EV share dipped to 28%, a 10-percentage-point decrease from the previous year.
Plug-ins secured a 24% market share in 2023, with BEVs contributing 16% individually. The growth of the European EV market is driven by technological advancements, evolving consumer preferences, and supportive regulatory frameworks.
Looking ahead, the EV market in Europe continues to be influenced by various factors, including the conclusion of incentives and the anticipation of a surge in 2025. In fact, EVs are projected to command over a third (33%) of total deliveries in Europe in 2025.
The German EV market is expected to continue its recovery in 2024, following the conclusion of incentives. The company projected to have sold the largest number of electric vehicles in Europe in 2024 is BYD, a Chinese automotive giant expanding aggressively into the European market.
Sustained efforts by automakers will be crucial in realizing the full potential of electric mobility in Europe. The growth of the European EV market is a significant step towards a more sustainable future, and it's clear that the industry is committed to meeting the challenges ahead.
