Post by : Badri Ariffin

Europe’s new car market picked up speed in October, posting a 4.9% rise in registrations as electric vehicles surged ahead of petrol and diesel models, according to fresh data from the European Automobile Manufacturers’ Association (ACEA). The jump offers a rare moment of relief for an industry grappling with tariffs, slowing global demand and concerns around chip supply.

The EU, UK and EFTA markets together recorded 1.092 million new cars in October, boosted by strong performances in major economies. Germany led with a 7.8% increase, followed by Spain with a sharp 15.9% rise. The UK and France saw more modest growth, while Italy slipped by 0.5%, holding back broader momentum.

Industry giants delivered mixed outcomes. Volkswagen Group posted a 6.5% rise in October registrations, while Renault jumped 10.6%. Stellantis, despite a 4.6% increase in the month, remains 4.7% lower year-to-date compared to 2024.

The shift toward cleaner mobility grew sharper. Battery-electric, plug-in hybrid and hybrid vehicles collectively accounted for 63.9% of EU registrations—up from 55.4% a year earlier. Fully electric cars alone rose 38.6%, reflecting stronger consumer adoption despite concerns around pricing and infrastructure.

China’s presence in Europe continued to expand. BYD’s registrations soared 206.8%, lifting its market share to 1.6% from just 0.5% last year. Chinese-owned SAIC Motor also recorded a 35.9% increase. In contrast, Tesla faced a steep 48.5% drop, losing ground in a market it once dominated.

Beyond shifting consumer preferences, the sector remains under pressure. Ongoing worries about supply chain stability—heightened recently by issues involving Dutch chipmaker Nexperia—continue to unsettle automakers already dealing with trade uncertainties and fluctuating demand in China.

Despite the October lift, ACEA noted that overall sales volumes still sit below pre-pandemic levels, reflecting a market that is growing but not yet fully recovered. The acceleration in electric vehicles marks a clear direction for Europe’s future mobility, even as the industry navigates uneven terrain.

#Economic #Business & economy