Post by : Saif
New car sales in Europe rose by 4.9% in October, showing that the market is slowly recovering even as the auto industry faces many challenges. According to new data from the European Automobile Manufacturers’ Association (ACEA), electric vehicles continued to grow faster than traditional petrol and diesel cars, helping to boost overall sales during the month.
The European car industry has had a difficult year. It has had to deal with trade tariffs imposed by U.S. President Donald Trump, weaker demand in China, and a transition to electric mobility that is taking longer and costing more than expected. On top of that, concerns about a possible chip supply shortage involving Dutch chipmaker Nexperia raised new worries for manufacturers already struggling with supply chain problems.
Despite these issues, European consumers continued buying new cars, especially electric models. Sales in the European Union, the United Kingdom, and the European Free Trade Association together reached 1.092 million units in October. The biggest markets helped drive this growth. Germany saw an increase of 7.8%, the United Kingdom rose by 0.5%, Spain jumped 15.9%, and France grew 2.9%. Italy was the only major market to decline slightly, falling 0.5%.
Automakers saw mixed results. Volkswagen registrations rose 6.5% compared to last year, Stellantis increased 4.6%, and Renault posted strong growth of 10.6%. However, Stellantis was still down 4.7% for the year compared to 2024. One of the most notable results came from the competition among electric vehicle makers. Tesla’s sales fell sharply, dropping 48.5% compared to the same month last year. Meanwhile, Chinese manufacturer BYD showed extraordinary progress. Its sales increased 206.8%, giving the company 1.6% market share compared to just 0.5% one year earlier. Another Chinese-owned company, SAIC Motor, also saw sales rise 35.9%.
The biggest reason for the stronger October numbers was the growth of electric and hybrid vehicles. Total car sales in the European Union jumped 5.8%, but the rise in clean-energy vehicles was much larger. Registrations of battery-electric cars increased 38.6%, plug-in hybrids grew 43.2%, and hybrid electric cars rose 9.4%. Together, these vehicle types made up about 63.9% of all new registrations across the EU, a significant jump from 55.4% last October. At the same time, all major markets saw declines in petrol and diesel cars, showing how quickly consumer preferences are changing.
Europe’s shift towards electric vehicles is being pushed by stronger government rules, climate targets, and the arrival of more affordable models, especially from Chinese companies. These factors are increasing competition for European and American automakers who are trying to protect their market share while adjusting to the new era of clean transportation.
Even though the industry is facing uncertainty, the October sales report gives hope that consumers are ready to move towards a more electric future. But the competition is growing, and European carmakers will need to keep investing, innovating, and adapting if they want to stay strong in the global market.
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