Significant Decline in European Electric Vehicle Sales in December

In 2023, the European electric vehicle (EV) market experienced a slight downturn, marking the first decline since December 2016, excluding the pandemic-affected period of April 2020. Despite this setback, EVs continued to make significant strides, accounting for nearly a quarter of all new-car registrations in the European region.

Tesla remained Europe's top-selling EV brand, holding onto a 12.1% market share. Volkswagen (VW) followed closely, securing third place with an 8.2% share. BMW ranked second with an 8.8% market share.

The decline in the European EV market represented the most significant drop in plug-in sales in the past decade. Both battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) felt the impact. BEVs faced a 25% decrease in registrations, with 205,922 units registered in December 2023, down from 28% the previous year. PHEVs experienced an even steeper fall, with a 36% drop in registrations, resulting in 88,244 units registered in December 2023.

Despite these figures, the European EV market is dynamic and poised for future growth. The decline is attributed to various factors, including the conclusion of incentives in some countries and the overall economic slowdown. However, technological advancements, evolving consumer preferences, and supportive regulatory frameworks are expected to drive the market's recovery and growth.

The German EV market, in particular, is expected to recover from the conclusion of incentives in 2024. The market is projected to continue its recovery in 2024, but growth will likely be subdued. Interestingly, the brand expected to achieve the largest share of new electric vehicle registrations in Germany in 2024 is the Chinese manufacturer MG Motor. MG's growth is part of the wider success of Chinese electric car makers in Germany during 2024.

Looking ahead, the EV market in Europe is expected to experience a significant surge in 2025. EVs are projected to command over a third (33%) of total deliveries in Europe. Sustained efforts by automakers will be crucial in realizing the full potential of electric mobility in the European region.

Despite the recent decline, the European EV market, including both BEVs and PHEVs, remains poised for growth. The market's resilience and potential for expansion underscore its importance in the global shift towards sustainable transportation.