The European new car market showed signs of improvement in March with registrations of new passenger cars totalling 1,423,340 units, up by 3.2% compared to March 2024. These results helped to offset the declines recorded in January and February, allowing the first quarter to close a with a total of 3,383,986 units registered – close to the 3,384,614 units registered in the same quarter last year.
The UK was the main driver of growth as the largest market during the month with volume up by 13%. Increases were also recorded in Italy and Spain, while Germany and France both experienced declines, with the drops of 3.9% and 15% respectively.
Felipe Munoz, Global Analyst at JATO Dynamics commented: “March was a momentous month for BEV registrations in Europe indicating that the positive response we are seeing to the continually broadening offer is finally having a real impact on the overall market.”
JATO Dynamics data for 28 markets across the region shows that a total of 240,891 battery electric vehicles (BEVs) were registered in March. This marks the second highest result on record for this powertrain behind December 2022 when registrations reached 275,108 units.
Last month, BEVs accounted for 16.9% of total registrations, marking a 2.7 percentage point increase in market share compared to March 2024, as volumes rose by 23% year-on-year. In terms of units registered, this was the strongest quarter for BEVs on record.
Tesla decline slows
Despite the momentum behind BEV uptake up in Europe, Tesla – the world’s largest BEV maker by sales volume in 2024 –recorded a 30% drop in registrations. This was the most significant decline among the 30 most registered brands, surpassed only by Mitsubishi in 33rd position (-43%), Lancia in 41st position (-73%), Jaguar (-82%), Smart (-65%), Maserati (-39%) and Abarth (-75%).
Despite the negative trend, the 30% drop experienced in March was less severe than those recorded in January (-47%) and February (-44%). “As the brand continues to deal with a host of PR issues in addition to the changeover of the Model Y, Tesla is now relying on the Model 3 to offset the loses”, Munoz added. The midsize sedan recorded an increase of 1.1% to reach 12,500 units, topping the BEV ranking alongside the Model Y.
While the Model Y (-49%) and Model 3 (-14%) both recorded notable declines between January and March, they were still able to outpace all other electric cars in Europe. The Volkswagen ID.4 followed in third position thanks to an outstanding 115% increase in registrations but remained 2,000 units short of the Model 3.
“Despite the controversy surrounding the brand’s CEO and the limited availability of the new Model Y, Tesla continues to perform well as the most popular EV brand in Europe. Its success, amid these challenges, provides an indication of what European consumers are looking for in an EV”, Munoz continued.
The Peugeot 208 takes the leadership
In March, the Dacia Sandero lost its title as Europe’s most registered new car to its rival from Stellantis, the Peugeot 208. Despite the change in leadership, the Sandero continued to lead over the quarter with the 208 following in second place. Among the top 10, the Volkswagen Tiguan saw a 42% increase in registrations, while the Peugeot 2008, and Opel/Vauxhall Corsa also performed well. Notably, these vehicles failed to make the top 10 in March 2024, when positions were held by the Tesla Model Y, Citroen C3, and Toyota Yaris.
Other standout performers included the MG ZS, the success of which was driven by the launch of its new generation – now available exclusively as a full hybrid, rather than an electric model. Munoz commented: “The initial success of the MG ZS is an example of how Chinese manufacturers are adjusting their strategies in response to EU tariffs on Chinese electric vehicles.” Other models that also recorded impressive growth include the Peugeot 3008 (+60%), the Seat/Cupra Leon (+28%), the Jeep Avenger (+56%), the Skoda Kodiaq (+34%) and the Suzuki Swift (+54%).
Among the latest market entries, MG registered nearly 9,800 units of the MG3, which is also powered by a hybrid engine. Renault followed closely with 9,330 units of the new Symbioz, while Fiat/Abarth recorded 8,000 units of the 600. The Volkswagen ID.7 emerged as the fourth most-registered electric vehicle in March, with 7,438 units, closely followed by Kia EV3 at 7,173 units. BYD posted 7,144 registrations, with over 6,500 of those being plug-in hybrids. Jaecoo registered 7,000 units of the Jaecoo 7 – despite it not being available as an electric or plug-in hybrid. Interestingly, the same number of units was registered for the Renault 5, which ranked as the eighth most popular electric car for the month.
SOURCE: JATO Dynamics
