European car sales recorded an increase of 0.8% to 12,847,929 units in 2024 up from 12,963,614 units in 2023, with hybrid vehicles driving the market forward, according to the European Automobile Manufacturers Association (ACEA).

Spain reported a 7.1% growth in 2024, contrasting with declines in France (-3.2%), Germany (-1%), and a marginal 0.5% drop in Italy.

December witnessed a 4.1% year-on-year growth in car sales across the European Union, Britain, and the European Free Trade Area, reaching 1.1 million units.

For this period, car manufacturers Volkswagen and Renault saw registrations climb by 4.9% and 16.6% respectively, while Stellantis experienced a 6.7% decline in the same period for the region.

In the EU specifically, December new car registrations increased by 5.1%, with hybrid electric vehicles (HEVs) and plug-in hybrids (PHEVs) growing by 33.1% and 4.9% respectively. However, battery electric vehicles (BEVs) saw a 10.2% decrease.

The fall in battery-electric car registrations, which totalled 144,367 units in December, was primarily due to significant decreases in Germany (-38.6%) and France (-20.7%). This led to a 5.9% reduction in market volume for the year compared to 2023, with battery-electric cars holding a 13.6% market share in 2024.

Plug-in hybrid registrations rose in December 2024, bolstered by gains in France (44.9%) and Germany (6.8%).

Plug-in hybrids maintained an 8.3% market share, despite a 6.8% drop in year-total volumes for 2024 compared to 2023.

Hybrid-electric vehicle registrations surged in December, boosting their market share to 33.6%, up from 26.5% in the previous December. This growth meant hybrids exceeded petrol car registrations for the fourth month in a row.

In contrast, petrol car registrations dipped by 1.8% in December, with all major markets, except Spain, experiencing declines. France suffered the most significant fall at 23%, followed by Italy and Germany.

As a result, the market share for petrol cars fell to 29.6%, down from 31.6% in the same month last year. Diesel vehicles also saw a market share drop to 9.8% after a 15% decline, with most EU markets noting double-digit decreases.

In October 2024, a study commissioned by the environmental group Transport & Environment revealed that the five largest EU economies are collectively spending €42bn ($45.6bn) annually on subsidies for fossil-fuel company cars.