In May 2023, the EU car market saw a significant increase in passenger car registrations, with nearly 1 million units, marking an 18,5% growth from the previous year, according to the figures of the European car manufacturers association (ACEA).

This is the tenth consecutive month of growth. All the EU’s four largest markets grew, with the strongest gains in Italy (+23.1%), Germany (+19.2%), and France (+14.8%).

For the first five months of 2023, the EU car market grew by 18% to 4,4 million registered cars. Although the market improved in May, year–to–date sales are still 23% lower compared to the same month in 2019, when 5,7 million units were registered.

In this five–month period, there were double–digit gains in most markets, including the four largest: Spain (+26,9%), Italy (+26,1%), France (+16,3%), and Germany (+10,2%).

Serious growth for BEVs and other electrified vehicles

Last month, new registrations of battery electric cars in the EU experienced a significant boost, rising by 70,9% to reach 129 847 units. This equates to a market share of 13,8% and a four-percentage-point increase compared to May 2022.

Most EU markets recorded impressive double- and triple-digit percentage gains, including the four largest electric ones: the Netherlands (+118,4%), Sweden (+82,6%), France (+48,7%), and Germany (+46,6%). Overall, this resulted in a cumulative increase of 50,5%, with over half a million units sold from January to May.

Hybrid electric cars maintained their growth momentum, as sales increased by 27,6% to reach 234 380 units in May. This result was largely driven by double-digit growth in the EU’s four largest markets: Germany (+54,5%), Italy (+27,2%), France (+22,1%), and Spain (+10,3%). As a result, hybrid electric cars are the second-most popular choice for new car buyers, accounting for almost a quarter of the market (up from 23,2% in May 2022).

The EU market for new plug-in hybrid cars declined slightly, with registrations decreasing by 0,6% in May. This decline was primarily driven by a significant drop in sales in Germany (-40,5%), the largest market for this fuel type, as incentives for plug-in hybrids were discontinued at the end of 2022. As a result, the overall market share of plug-in hybrid cars decreased to 7,4% from 8,8% in May last year.

Petrol is still strong, and diesel is shrinking further

In May, the EU market for petrol cars grew by 12,6% to reach 342 806 units. Despite this, the market share stood at 36,5%, nearly two percentage points less than in May 2022. Growth was mainly driven by increases in the four largest EU markets, most notably Italy (+23,9%), France (+18,3%), and Germany (+17,6%). From January to May, more than 1,6 million petrol cars were sold in the EU, a remarkable 17% increase from the same period in 2022.

In contrast, the EU diesel car market again declined by 2,9% last month, despite performing well in two of the bloc’s largest markets: Italy (+24,3%) and Germany (+3,6%). Diesel cars now account for 14,3% of the EU market share, down from 17,4% in May 2022.

All in all, the two traditional fuels now represent half of the European market (50,8%), while alternative fuels have climbed to 49,2%, with electrified cars representing 46,2% of the total market.

UK and EFTA

A brief look at the UK and EFTA (Iceland, Norway, Switzerland) markets shows the same tendencies. The total sales in May have increased by 16,7% in the UK and 16,4% in EFTA. BEVs grew by 58,7% in the UK and 39,6% in EFTA, where electric sales in Norway are increasing again.

Considering the first five months of 2023, sales have risen by 16,8% in the UK and 5,7% in EFTA. Here also, the fully electric cars were the biggest winners (+31,1% in the UK, +9,4% in EFTA), while hybrids were the second biggest progressors: +23% in the UK, +22,1% in EFTA).

Volkswagen still dominating

When we look at the different brands in the EU, the Volkswagen Group is still by far the most dominant group, growing by 19,5% in May and by 23,6% in the first five months, increasing its market share to 26,1% (+ 1,2%). Second in the row is Stellantis, stagnating in May and losing market share for the first five months (from 20,6% to 18,9%).

The Renault Group continues to recover very well, recording a sales increase in May of 35,9% and 31,6 in the first five months. The biggest increase goes to low-cost daughter Dacia, with a sales increase of 46,3% in May and 43,2% over the first five months. Market share during this period went from 9,8% to 11,0%.

Fourth and fifth are still the Hyundai Group and Toyota Group, still increasing their sales (Hyundai only slightly) but losing market share: from 9,7% to 8,4% for the Koreans, from 7,3 to 6,9% for the Japanese.

The first premium manufacturer, in sixth place, is the BMW Group, increasing its sales by 34,3% in May and by 12,9% for January-May 2023. But market share for that same period still slipped from 6,9% to 6,6%. Biggest competitor Mercedes-Benz is still in seventh place, increasing its sales by 12,1% for the first five months but seeing its market share decrease from 5,9% to 5,6%.

Tesla in the top ten

The brand with dazzling growth figures is (again) Tesla, but that has something to do with sales almost at zero in May 2022. Last month, Tesla sold 21 927 cars in the EU, a 2191,2% increase compared to May last year (957 sales). Nevertheless, Tesla is doing very well, climbing to ninth place in the EU ranking (after Ford) and increasing its first five months’ sales by 164,4% to 102 251 units, representing a 2,3% market share (up from 1,0%).

Other good performers for the same five months are Volvo (+12,3%, 10th place), Nissan (+20,3%, 11th), Suzuki (+39,0%, 12th), and Mazda (+40,7%, 13th). Fourteenth is Jaguar Land Rover Group, with a big distinction between the Land Rover part (+32,4%) and the Jaguar part (-21%).

Serious losers in a growing market are two other Japanese brands. Mitsubishi and Honda both saw their market share shrink to 0,3% and their sales by -37,8% and -42,0%, respectively. When we look at the EU plus UK and EFTA, we see the percentages differ slightly, but the tendencies remain the same.