By Greta Rosen Fondahn and Alessandro Parodi
(Reuters) -New car sales in Europe rose 2.8% in March, boosted by double digit jumps in Britain and Spain, as industry data on Thursday showed that an increase in registrations of electric vehicles in the month offset a fall in those of petrol and diesel cars.
Sales of fully electric cars were up 23.6% in the month, data by the European Automobile Manufacturers Association (ACEA) showed.
WHY IT’S IMPORTANT
While battling to bring down high costs in home markets and fighting competition from China, European carmakers are now grappling with the effects of U.S. President Donald Trump’s 25% tariffs on auto imports, clouding the outlook for the industry.
Trump’s 145% import taxes on Chinese imports – and Beijing’s retaliatory tariffs – have also pushed global growth forecasts lower, confronting automotive companies with new risks.
BY THE NUMBERS
March sales in the European Union, Britain and the European Free Trade Association (EFTA) rose to 1.42 million cars, after falling for two months, the ACEA data showed.
Registrations at Volkswagen and Renault grew by 10.3% and 13.0% respectively, while they fell by 5.9% at Stellantis.
Tesla’s sales fell for a third month, down 28.2% year-on-year, and its share of the total market declined to 2% from 2.9% a year ago.
In the EU, total car sales fell 0.2% year-on-year, declining for a third month even as the registrations of battery electric (BEV), hybrid electric (HEV) and plug-in hybrid (PHEV) cars grew by 17.1%, 23.9% and 12.4% respectively.
Electrified vehicles – either BEV, HEV or PHEV – sold in the bloc accounted for 59.2% of passenger car registrations in March, up from 49.1% in the previous year.
Among the largest EU markets, sales in Spain and Italy increased by 23.2% and 6.3% respectively, while in France and Germany they dropped by 14.5% and 3.9%.
In Britain, registrations were up 12.4%.
CONTEXT
Market experts say a growing interest in electric cars in Europe, the world’s second-biggest EV market, is largely due to new EU emission targets and the launch of cheaper electric models, although the EU has recently proposed loosening the targets.
(Reporting by Greta Rosen Fondahn and Alessandro Parodi in Gdansk; Editing by Sandra Maler)
