Key facts
- European car registrations rose 3.6% in May, with a 4.5% increase in the first five months of the year.
- Electric vehicle sales in Europe saw a 34% annual increase in May.
- BYD, Leapmotor, and Chery reported sales growth of 137%, 465%, and 244% respectively in Europe.
- Plug-in hybrid sales increased by 13.2% and hybrid car sales by 8.2% in May.
- Demand for second-hand EVs also saw a notable increase.
European car sales saw a notable increase in May, largely propelled by a surge in electric vehicle (EV) adoption, with Chinese manufacturers significantly expanding their market share. Overall car registrations climbed 3.6% for the month, according to the European Automobile Manufacturers’ Association (EAMA), contributing to a 4.5% rise in sales for the first five months of the year.
EV sales specifically jumped by 34% year-over-year in May, with EAMA reporting a 39.1% increase. Plug-in hybrids also saw a 13.2% gain, and hybrid car sales rose by 8.2%. The association attributed this growth to strong consumer demand, supported by new tax benefits and incentive schemes across key European markets.
Chinese EV brands were the primary beneficiaries of this trend. BYD, Leapmotor, Chery, and Geely experienced dramatic sales increases in Europe, with Leapmotor up 465%, Chery up 244%, and BYD up 137%. In contrast, European carmakers reported modest sales declines, highlighting a potential competitiveness issue for the domestic industry.
Factors contributing to the increased EV demand include rising fuel prices, exacerbated by geopolitical tensions in the Middle East. However, some industry observers caution that this appetite for EVs might wane if fuel prices stabilize later in the year. The data also indicated a strong demand for second-hand EVs, which are often more affordable than new models.
