In a significant shift in the European automotive market, battery-electric vehicles (BEVs) have surpassed diesel cars in new registrations for the second consecutive year. This trend highlights the increasing adoption of electric mobility and the continued decline of diesel-powered vehicles across the European Union.
The Rise of Electric Vehicles
In 2024, the European Automobile Manufacturers’ Association (ACEA) reported that battery-electric cars accounted for 13.6% of the total market share, while diesel registrations fell to 11.9%. This marks a pivotal moment as electric vehicles continue to gain traction among European consumers. Although the overall market share of BEVs experienced a slight decrease compared to 2023, the total number of new electric car registrations still exceeded that of diesel vehicles.
Key Figures:
- Battery-Electric Vehicles (BEVs): 13.6% market share in 2024, surpassing diesel for the second year in a row. A total of 1,447,934 new BEVs were registered in the EU in 2024.
- Diesel Vehicles: 11.9% market share in 2024, continuing a trend of decline.
- Total EU Car Registrations: Increased by 0.8% in 2024, reaching approximately 10.6 million units.
Market Dynamics
While the number of new electric car registrations is significant, it is important to note that the growth of the electric vehicle market has slowed compared to previous years. In 2024, new BEV registrations decreased by 5.9% compared to 2023, when over 1.5 million new battery electric cars were registered. Despite this decrease, electric vehicles have maintained their position as the third most popular choice for buyers, outpacing diesel vehicles.
Several factors influence the electric vehicle market in Europe:
- Government Incentives: The availability and changes in government subsidies have a direct impact on consumer interest in electric vehicles. For instance, the end of subsidies in Germany led to a significant drop in EV sales, while sales targets for automakers in the UK contributed to a rise in EV purchases.
- Consumer Preference: Hybrid vehicles, combining the familiarity of internal combustion engines with electric technology, have seen a surge in popularity, appealing to a broader consumer base.
- Market Variations: The development of electromobility varies significantly across individual markets. For example, the UK has overtaken Germany in terms of BEV sales in Europe, although Germany remains ahead within the EU.
The Decline of Diesel
The decline of diesel vehicles in the European market is a notable trend. In 2024, diesel car registrations experienced a significant drop, with a 15% decline in December alone. This decrease resulted in a 9.8% market share for diesel vehicles in December, with double-digit declines observed across most EU markets.
Factors Contributing to Diesel’s Decline:
- Emissions Regulations: Stricter emissions regulations have made diesel vehicles less appealing and more costly to produce, contributing to their decline in the market.
- Consumer Sentiment: As electric and hybrid options become more prevalent, consumer interest in diesel vehicles has waned.
- Technological Advancements: The improvement in electric vehicle technology, with increased range and charging infrastructure, has provided a more viable alternative to diesel.
Overall Market Trends
The European car market saw a slight increase in new car registrations in 2024, with an overall growth of 0.8%. However, the market experienced some significant fluctuations throughout the year and across different countries:
- Growth Drivers: Spain has shown resilience with a 7.1% growth rate, while the UK saw a substantial increase in electric vehicle sales.
- Market Declines: France, Germany, and Italy experienced declines in new car registrations, highlighting regional variations in consumer preferences and economic factors.
- Petrol Still Dominant: Petrol vehicles remain the most dominant fuel type with 35.2% of the market share, although they also experienced a 4.8% to 6.8% drop in sales depending on whether the data includes EFTA and UK sales.
Market Share Breakdown:
The market share of new passenger vehicles in the EU in 2024 breaks down as follows:
| Fuel Type | Market Share (Approximate) |
| :————————- | :————————- |
| Petrol | 35.2% |
| Hybrid Electric Vehicles | 30.9% |
| Battery-Electric Vehicles | 13.6% |
| Diesel | 11.9% |
| Plug-in Hybrid Vehicles | 7.1% |
Hybrid Vehicles on the Rise
Hybrid electric vehicles (HEVs) continue to strengthen their position in the market. In 2024, hybrid vehicles saw a 12.7% increase in registrations compared to the previous year, making up 33.6% of the market. This growth indicates a preference for vehicles that offer a blend of traditional combustion engines and electric technology. Hybrid registrations have outpaced petrol cars for four consecutive months, signaling a potential shift in market preferences.
Regional Variations
The adoption of electric vehicles and the decline of diesel vary across different European countries. Some key observations include:
- Germany: Experienced a 27.4% drop in new electric vehicle registrations, largely due to the end of government incentives.
- United Kingdom: Saw a significant 21.4% increase in BEV sales, overtaking Germany as the top EV market in Europe by volume.
- France: Experienced a 3.2% decrease in overall new car registrations.
- Spain: Showed strong resilience with a 7.1% growth rate.
- Norway: Continues to lead in EV market share with nearly 9 out of 10 new vehicles sold being electric.
- Netherlands: Achieved almost 35% market share for BEVs in 2024.
Looking Ahead
The European automotive market is undergoing a significant transformation, driven by the shift towards electrification. While petrol vehicles still hold a significant market share, the increasing adoption of electric and hybrid vehicles signals a move towards more sustainable transportation options.
Key Trends to Watch:
- Continued Growth of EVs: The electric vehicle market is expected to continue its growth trajectory, albeit with potential fluctuations due to policy changes and market dynamics.
- Hybrid Dominance: Hybrid vehicles are expected to continue their strong growth as consumer demand for them rises.
- Stricter Regulations: The EU is tightening its CO2 emission restrictions, which will likely push car manufacturers to focus more on electric and hybrid vehicle production.
- Infrastructure Development: Further development of charging infrastructure will be crucial for sustaining the growth of the electric vehicle market.
Conclusion
The fact that electric cars have overtaken diesel in new registrations across the EU is a significant milestone. The shift towards electric vehicles, while facing some challenges, is undeniable, and it reflects a broader trend towards more sustainable transportation. The European automotive market is set to continue its evolution in the coming years, with electric and hybrid vehicles playing an increasingly vital role.
