European Car Sales Flat In October, EVs Gain Ground, ACEA says

Car Sales in Europe: New car sales in Europe were flat in October, after falling for two consecutive months, industry data showed on Thursday, while the transition to fully electric or hybrid models gained ground in the month.

An uptick in total sales in Spain and Germany, of 7.2 per cent and 6 per cent respectively, offset a contraction in France, Italy and Britain, the European Automobile Manufacturers Association (ACEA) said.

Why it's important

European automakers are struggling with weak demand, high production costs, and managing the shift to EVs, while trying to fend off competition from China.

By the numbers

The number of new vehicles registered in October in the EU, Britain and the European Free Trade Association (EFTA) rose 0.1 per cent year-on-year to 1.04 million.

Sales of fully electric cars (BEVs) rose for the second consecutive month, up 6.9 per cent in October, while those of hybrid cars (HEVs) rose by 15.8 per cent.

Registrations in the EU, Britain and EFTA at Volkswagen rose 12.6 per cent, while they fell by 16.7 per cent at Stellantis and by 0.4 per cent at Renault.

Sales were down 23.1 per cent at EV maker Tesla TSLA.O and down 10 per cent at China's SAIC Motor.

In the EU, total new car registrations rose 1.1 per cent year-on-year. Germany saw sales increase with 6 per cent, after three months of losses.

Electrified vehicles - either BEV, HEV or plug-in hybrids (PHEV) - sold in the bloc accounted for 55.4 per cent of passenger car registrations in October, up from 51.3 per cent in the previous year.

Quotes

"As we head towards the end of the year, carmakers are increasingly rolling out discounts and deals to sell off any unsold stock," said Felipe Munoz, Global Analyst at market research firm JATO Dynamics in a separate statement on Wednesday.

"This is helping registration figures stabilise and shouldn't be mistaken as an indication of market recovery", he added.

Context

The European Union approved at the end of October increased tariffs on Chinese-built electric vehicles of up to as much as 45.3 per cent.