The Western Europe new car (passenger vehicle – PV) selling rate fell slightly to 12 million units/year in January, with 901k vehicle registrations. In YoY terms, January grew 10.7% YoY, helped by a strong growth in Germany along with the other major West European countries. However, relative to pre-pandemic January 2019, the PV market is down almost 19%.

The German PV market performed well in January with 214k vehicle registrations, 19.1% higher YoY. The strong YoY comparison is due to January 2023 being a low base given that the German government lowered certain vehicle incentives from the start of last year. The other major West European countries also performed well YoY thanks to a more supportive supply environment.

With supply having been a key limiting factor over recent years, 2024 will see the focus return to the health of underlying demand. In this regard, consumers face headwinds such as high interest rates, inflation, and elevated vehicle pricing. However, the latter should ease as a function of greater vehicle supply and further volume recovery is baked into the 2024 outlook. Risks remains, noting the recent Red Sea attacks hitting freight costs, which only increases pressure on the manufacturing cost base.

The Western Europe PV selling rate fell slightly to 12 million units/year in January with 901k vehicle registrations. In YoY terms, January grew 10.7% helped by strong growth in Germany along with the other major West European countries. However, relative to pre-pandemic January 2019, the PV market is down almost 19%. The market in 2024 is forecast to reach 12.1 million units, the best year since the pandemic hit.

Germany’s PV market recorded 214k vehicle registrations in January, 19.1% higher YoY. With a selling rate of 3 million units/year, the strong positive YoY growth is due to January being a low base given the fact that Germany brought down some incentives from the start of 2023. The market is still, however, lagging 20% behind January 2019 and domestic demand remains weak. The UK PV market registered 143k vehicles in January 2024, 8.2% higher YoY, with a selling rate of 2.2 million units/year. The PV market continues to register positive YoY growth, thanks to the fleet side.

The French PV market started 2024 with 122k vehicle registrations in January, 9.2% higher than January 2023. With a selling rate of 1.8 million units/year, the market performed close to expectations as supply constraints become less of an issue. Italy’s PV market registered 142k vehicles in January 2024, 10.6% higher YoY, with the selling rate steady at 1.6 million units/year. Demand in upcoming months may benefit from the new car incentive plan unveiled by the Italian government. The Spanish PV market in January 2024 registered 69k vehicles, 7.3% higher YoY, with a selling rate of 960k units/year — the market performance continues to improve, helped by growth in the rental channel.