The weak German new car business slowed down the car market across the EU in September. Experts are expecting many discount campaigns for the coming year – including on electric and hybrid vehicles.
Car sales in the European Union did not grow as strongly in September as in previous months. A total of 861,062 cars were newly registered, 9.2 percent more than the year before. This was announced by the European industry association Acea.
Despite the increases, the pre-Corona level is still far away. Since the beginning of the year, new registrations have increased by 16.9 percent to eight million vehicles – in the same period in 2019 there were ten million.
Every third new car still has a petrol engine
With the exception of Hungary, all markets have grown since the start of the year. Italy achieved an increase of 20.5 percent in the first nine months, followed by Spain with 18.5 percent, France with 15.9 percent and Germany with 14.5 percent.
When it comes to drive types, gasoline vehicles enjoyed continued popularity in September: a good one in three new cars sold had a gasoline engine, and a good fifth of all cars were hybrid cars that also have an electric motor. Electric cars followed in third place with a market share of 14.8 percent (previous year: 14.1 percent).
Reduced e-car funding is slowing the overall market
The main reason for the dip in growth in September is the weak development in Germany, the largest market within the EU. New registrations there fell by 0.1 percent, which was mainly due to electric cars. Due to the expiry of subsidies for commercial purchases of electric cars, new electric car registrations in Germany increased by 171 percent in August, thereby strongly driving EU-wide market growth.
“The ups and downs in new electric vehicle registrations in Germany show how strongly government subsidies influence the market. The rule is: where a lot is subsidized, a lot is bought,” says Constantin M. Gall from the consulting firm EY. With a view to Germany, the car expert expects electric sales to be rather weak in the coming months, which will also slow down the momentum throughout the EU.
Overcapacity are expected
For the year as a whole, experts predict that the EU new car market will grow by 16 percent. The outlook for 2024 is rather bleak given the current economic situation, reduced purchasing power and significantly increased new car prices. Added to this are the sharp rise in interest rates and the significant geopolitical tensions. “The order backlog from the times of the chip shortage has largely been processed,” said Gall. Other factors such as the economic situation are becoming more important again.
This threatens overcapacity; So more vehicles are produced than sold. In response, some manufacturers have already begun to stabilize sales with special financing, promotions and cheap special models. Gall is certain: “These are just the harbingers of what will likely be a broader discount battle in the coming months.” The good news for consumers: You can also expect discount campaigns on electric cars and hybrids.