Europe car sales rise 19% with growth streak nearing a full year

AUTO sales in Europe rose in June as growing demand for electric cars and improved parts supply helped fuel an 11th consecutive month of growth.

New-car registrations increased 19 per cent to 1.27 million vehicles, the European Automobile Manufacturers’ Association said on Wednesday (Jul 19). Sales of battery-electric vehicles surged 55 per cent, while deliveries of diesel cars declined 10 per cent.

Carmakers are still working down order books as longstanding shortages of critical components like semiconductors have eased. The outlook, though, is clouded by prospects that supply-chain logjams could return amid surging demand for electric vehicles (EV), and consumers may cut back spending due to higher costs of living and slowing global growth.

Buyers in Germany registered 52,988 fully electric cars in June, the most in Europe and a 64 per cent increase from the same month last year. France also contributed to EV growth with 33,280 sales, while the Netherlands added 13,892 battery-powered cars.

Including all fuel types, Volkswagen sold the most passenger cars in the region, logging 325,612 deliveries, a 27 per cent increase from last year. Stellantis’ sales declined 2.5 per cent to 210,495 – still enough to come in second overall.

Tesla, which plans to expand production capacity at its factory in Germany, sold 47,606 vehicles, pulling ahead of local brands Fiat and Citroën and more than doubling registrations from a year ago. BLOOMBERG