European new car sales in February increased by 1.7% year-on-year, with BYD surging by 162%.

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（Source: IT Home）

IT Home March 24 news: Last month, European auto sales rose slightly, driven by consumers shifting toward purchasing electric vehicles. Consumers are using the newly issued subsidy policies to choose from an increasingly diverse range of affordable models.

Data released by the European Automobile Manufacturers’ Association on Tuesday local time showed that new car registrations in February increased 1.7% year over year to 979,321 vehicles. Sales rose in Germany, Spain, Italy, and the UK, offsetting France’s nearly 15% drop.

The growth rate of electric vehicles far outpaced a sharp decline in gasoline-powered vehicles. As middle- and low-income groups begin to benefit from the new subsidy policies, total sales of plug-in vehicles in Germany surged 27%. In France, demand for pure electric vehicles jumped 28%, while sales of gasoline cars, diesel cars, and hybrid vehicles fell.

Driven by new models such as Renault Group’s electric version of the R5 compact car, the Skoda Elroq mid-size SUV, and BYD’s Dolphin hatchback, among others, in the first two months of this year, the share of sales of pure electric and plug-in hybrid vehicles has already exceeded one-third of the European market.

Bloomberg Industry Research analyst Gillian Davies said that although overall vehicle deliveries are basically stable, the outbreak of the conflict involving Iran and its spillover to the Middle East may hinder Europe’s already-anticipated automotive demand recovery.

In the report, Davies said: “Economic uncertainty caused by the war and accelerating inflation may prompt countries to raise interest rates. This will hit consumer confidence and curb consumer spending on big-ticket items such as new cars.”

Bloomberg Industry Research has issued its latest forecast for the conflict’s long-termization: if the war continues, European vehicle sales in 2026 could fall 4%, compared with a pre-war expectation of growth of 2%.

A team of analysts led by Philippe Houssouwa at Jefferies pointed out that demand for electric vehicles and plug-in hybrid models continues to grow, benefiting Chinese automakers such as BYD and Leapmotor. These brands have already captured market share in more than a dozen European markets. The EU’s import tariffs on Chinese-made electric vehicles have only a minor impact on the speed of market penetration.

In February, BYD and SAIC Motor Group, which owns the MG brand, saw year-over-year sales increases of 162% and 12%, respectively, both surpassing Tesla. Combined, the two automakers sold 40,314 vehicles, accounting for a 4% share of the European market.

European local automakers are countering by launching more competitive electric vehicle models. This year, the Volkswagen brand under the Volkswagen Group, along with Skoda and Seat’s Cupra sub-brands, will roll out new electric vehicle models priced at about 25,000 euros (IT Home note: at the current exchange rate, about RMB 200,000). By 2030, of the 22 new models Renault plans to introduce in Europe, more than half will be electric vehicles.

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