- In May, new car registrations in Europe increased by 3.6% year-on-year to 1,152,523 units. The combined market share of pure electric, plug-in hybrid, and hybrid models has exceeded two-thirds, becoming the core driving force of the European car market.
- Demand for traditional internal combustion engine cars has significantly weakened, with sales of gasoline and diesel vehicles both declining by about 19% in May. This has led to a general shrinkage in registrations for European traditional car manufacturers like Renault, Stellantis, and Volkswagen, ranging from 1% to 3%.
- Chinese car brands have further expanded their market share in Europe. Leapmotor's sales in May soared by 465.1% year-on-year, while Chery and BYD saw increases of 244.1% and 136.6%, respectively. Tesla also continued its rebound momentum with a 107.9% increase.
Electrification Demand Becomes the Absolute Pillar of the Car Market
According to the latest data released by the European Automobile Manufacturers Association (ACEA), new car registrations in May in the EU, UK, and European Free Trade Association (EFTA) showed structural divergence. Against the backdrop of a sharp decline in traditional fuel car sales, electrified models maintained high growth momentum. The data shows that registrations of pure electric vehicles (BEV) in May increased by 39.1% year-on-year, while plug-in hybrid vehicles (PHEV) and hybrid vehicles (HEV) grew by 13.2% and 8.2%, respectively. Policy adjustments and new tax incentives are continuously guiding European consumers towards low-emission and zero-emission models.
Traditional Giants Under Pressure and Market Share Reshuffling
In the deep waters of electrification transformation, the market share of traditional European car manufacturers is facing erosion. Volkswagen (VOW:DE), Stellantis (STLAM:US), and Renault (RNO:FR) all saw a decline in registrations ranging from 1% to 3% in May. This trend reflects the ongoing transformation pains faced by European giants amid supply chain cost pressures and the iteration cycle of new energy product lines. The nearly 20% drop in traditional fuel car sales has not been fully compensated by their own new energy models, and the market stock space is tilting towards external competitors.
Chinese Brands Show Strong Expansion Momentum Against the Trend
In stark contrast, Chinese car manufacturers are accelerating their penetration in the European market. In May, Leapmotor (9863:HK) achieved explosive growth of 465.1% due to base effects and channel expansion; Chery (9973:HK) and BYD (002594:CH) also performed well, with year-on-year increases of 244.1% and 136.6%, respectively. Geely (0175:HK) and SAIC (600104:CH) also recorded steady growth of 12.6% and 13.9%, respectively. Chinese brands, leveraging their vertically integrated supply chains and high cost-performance product configurations, are rapidly encroaching on the market territory of traditional European car companies.
Tesla's Supply and Demand Recovery and Future Policy Variables
Among American car manufacturers, Tesla (TSLA:US) saw its registrations in May increase by 107.9% year-on-year to 28,610 units, marking the fourth consecutive month of rebound. Previously, Tesla had experienced a year-long sales slump in Europe, and the recent strong recovery indicates that its price reduction strategy and capacity adjustments are gradually reaching the end market. However, with Europe potentially imposing stricter tariff barriers or reevaluating barriers on imported electric vehicles, there remains significant uncertainty in the market share and supply chain layout strategies of various foreign brands in the coming months.
