NFDA calls for EV price incentives in spring budget after EU car market returns to growth

January saw a return to growth in new passenger car registrations, according to the latest European Automobile Manufacturers’ Association (ACEA) figures. These followed a -3.3 per cent contraction in December. New car registrations in the EU witnessed an increase of 12.1 per cent year-on-year, reaching 851,690 units for January 2024. “It is positive to see a return to growth in the EU car market following the contraction experienced in December 2023, particularly with January traditionally being a slower month” said Sue Robinson, chief executive of the National Franchised Dealers Association (NFDA), commenting on the figures.

All major markets in the EU witnessed significant growth with high single-digit or double-digit gains including Germany (+19.1 per cent), Italy (+10.6 per cent), France (+9.2 per cent), and Spain (+7.3 per cent).

Battery electric vehicles (BEVs) captured 10.9 per cent of the EU car market share with 92,741 units, up from a market share of 9.5 per cent in January 2023.

Hybrid-electric cars made up 28.8 per cent of the EU car market share, with 245,068 units, whilst petrol and diesel cars combined totalled almost 50 per cent of the market share, marking a decline from 54 per cent one year ago.

Robinson concluded: “These numbers build on figures released last week by JATO Dynamics which noted that Europe saw its highest new vehicle registrations since the pandemic in 2023.

“It is also positive to see that electric vehicles have captured a higher market share of the EU car market than at this point last year. This comes amidst positive news regarding EVs from Europe. Last week, the French government announced that it was halting its subsided EV lease programme due to strong demand with plans to resume it again next year.

“In contrast, the UK remains the only major market in Europe without upfront price incentives for private buyers of electric vehicles. This issue has been brought to the attention of the UK Chancellor in NFDA’s budget submission. The upcoming Spring Budget on March 6 presents the UK government with an opportunity to remedy this and drive demand to avoid EV sales from flatlining.

“The outlook for the industry remains positive with both UK and EU car markets experiencing a strong start to 2024.”