European Car Sales Slump in November: France and Italy Lead the Decline, ACEA Reports

The European car market experienced a significant downturn in November 2024, with new car registrations falling by 1.9% compared to the same period last year. The European Automobile Manufacturers' Association (ACEA) attributed this decline to a combination of economic uncertainty, shifting consumer preferences towards electric vehicles (EVs), supply chain disruptions, and seasonal factors. France and Italy led the decline, with registrations dropping by 12.7% and 10.8%, respectively.

Economic uncertainty, particularly high inflation and stagnant growth, may have deterred consumers from purchasing new cars in France and Italy. Additionally, the shift towards EVs, which have seen increased demand and market share in Europe, may have contributed to the decrease in traditional car sales. However, the battery-electric car market share fell to 15% in November 2024, indicating that the shift to EVs may not be the sole reason for the decrease in sales.

Supply chain disruptions, such as the ongoing semiconductor shortage, may have affected the availability of new cars, particularly in France and Italy. Seasonal factors, such as the holiday season and colder weather, may also have contributed to the decline in registrations.

The decline in car sales in France and Italy has had an impact on the sales performance of different vehicle types. Battery-electric car registrations fell by 9.5% in November 2024, primarily driven by significant decreases in Germany (-21.8%) and France (-24.4%). Plug-in hybrid car registrations fell by 8.8%, following significant declines in France (-19.6%), Belgium (-61.4%), and Italy (-31.4%). Hybrid-electric registrations increased by 18.5%, with market share rising to 33.2%, exceeding petrol car registrations for the third consecutive month.

European automakers have been implementing various strategies to adapt to the changing market conditions and consumer preferences in France and Italy. Renault, for example, has focused on electric vehicles and affordable models to cater to the growing demand for sustainable and budget-friendly options. Peugeot has introduced new EV models to attract eco-conscious consumers and comply with stricter emissions regulations. Volkswagen has expanded its electric vehicle lineup to tap into the growing demand for sustainable transportation. Fiat has focused on small, fuel-efficient cars and electric models to appeal to cost-conscious consumers and meet emissions targets. Ford has invested in hybrid and electric powertrains and partnered with Volkswagen to develop electric vehicles. BMW has committed to expanding its electric vehicle range to cater to the growing demand for sustainable luxury vehicles.

The European car market faces challenges, but automakers are adapting to the changing landscape by investing in electric vehicles and other sustainable technologies. As consumer preferences continue to evolve, automakers must stay innovative and responsive to maintain their competitiveness in the market.