Jato Dynamics reports that September was another significant month for Europe’s automotive industry, as new car registrations fell by 25% to just 964,800 units.
Felipe Munoz, Global Analyst at JATO Dynamics, said, “Dealers continue to face issues with the availability of new cars due to the chip shortage. As a result, unwilling to wait more than a year for a new car, many consumers have turned to the used car market.”
Munoz continued, “The growing popularity of EVs is encouraging, but sales are not yet strong enough to offset the big declines seen across other segments.”
Before the pandemic, there were 10.3 new diesel cars registered for every electric or plug-in hybrid vehicle. Today, that ratio has decreased to just 1.3. Munoz said, “Shifts of this magnitude are rare, and a number of factors have contributed to the current state of play. In addition to incentives, OEMs have enhanced their offering with more models and better deals, and many are shifting their limited supply of semiconductors to the production of EVs, instead of ICE vehicles.”
As a result of the EV car demand, the Tesla Model 3 topped the European model rankings in September, with 24,600 registered units – a 2.6% market share. This is both first time that an EV has led the market and the first time that a vehicle manufactured outside of Europe has occupied the top spot.
September has historically been a strong month for the US manufacturer’s registration results in Europe, on average accounting for 68% of its third quarter deliveries since 2018. Last month, registrations accounted for 74% of third quarter volume. Since its’ entry to the European market, the Model Y has also performed well, securing second position in the BEV ranking.
Due to the success of these two models, Tesla leads the BEV market with a share of 24%, ahead of the Volkswagen Group with 22%, Stellantis with 13%, and Hyundai-Kia with almost 11%. Tesla also registered more new cars than established brands including Fiat, Nissan or Seat.
The Model 3’s performance partly reflects “Tesla’s intensive end-of-quarter sales push,” the research firm said in a report released Monday.
Taking the monthly sales crown is a major milestone for EVs and another sign that the automotive industry is accelerating its pivot away from the combustion engine. It’s also the first time a car made outside of Europe has claimed the region’s top spot.
Governments in Europe are offering generous incentives to entice buyers to trade in combustion-engine cars, with fully electric and plug-in hybrid vehicles accounting for 23% of the region’s car market in September, a near doubling from 2020.