European car sales recorded strong growth in September as electric and hybrid vehicles continued gaining market share. Meanwhile, traditional petrol and diesel cars experienced another significant decline in registrations.
According to the latest figures from the European Automobile Manufacturers’ Association (ACEA), new car registrations increased 10.2% year-on-year to 1.36 million vehicles across the European Union, European Free Trade Association countries and the United Kingdom.
The results highlight the growing importance of electrified vehicles in Europe’s automotive market, with Chinese manufacturers expanding their presence and established carmakers facing intensifying competition.
European Car Sales Rise as Electric Vehicles Gain Momentum
Battery electric vehicles (BEVs) led September’s growth, with registrations surging nearly 60% compared with the previous year.
Plug-in hybrid electric vehicles (PHEVs) also delivered strong results, recording a 24% increase. Meanwhile, conventional hybrid electric vehicle (HEV) registrations climbed 5.3%.
In contrast, traditional combustion-engine vehicles continued losing ground.
Petrol vehicle registrations declined 20.6% year-on-year, while diesel car sales dropped 28%.
The figures demonstrate a significant shift in European consumer preferences toward vehicles offering electric or hybrid powertrains.
Hybrid Vehicles Lead the European Automotive Market
By the end of September, conventional hybrid electric vehicles accounted for the largest share of the European Union’s new car market.
Hybrid vehicles represented 36.3% of registrations, followed by battery electric vehicles with a 22.7% market share.
Petrol-powered vehicles held a smaller 21.2% share, reflecting their declining position in the region’s automotive market.
Growing competition, expanding vehicle choices and the availability of electrified models have contributed to this transition.
Chinese automotive manufacturers have also increased their presence across Europe, introducing additional electric and hybrid vehicles at competitive price points.
BYD and Chinese Automakers Expand Their European Presence
Chinese car manufacturers have become increasingly important competitors in Europe’s automotive industry.
Companies including BYD, SAIC, Leapmotor and Chery Auto have expanded their offerings, giving European consumers more choices across electric and hybrid vehicle categories.
Chery entered European Union markets earlier in the year, adding to the growing number of Chinese brands competing for market share.
BYD remained the leading manufacturer among its Chinese competitors, recording a 98.4% year-on-year increase in registrations.
The company’s European registrations reached 49,953 vehicles, highlighting the rapid expansion of its regional business.
BYD’s performance reflects the growing competitiveness of Chinese automakers as they seek to establish stronger positions in international markets.
Tesla Registrations Rebound Sharply in Europe
Tesla also reported a substantial recovery in European vehicle registrations following several months of weaker performance.
The American electric vehicle manufacturer recorded a 72.5% year-on-year increase, bringing registrations to 68,776 vehicles.
The improvement represents an important rebound for Tesla after a challenging period in the European market.
Comparing the reported figures, Tesla registered more vehicles than BYD in absolute terms, while BYD achieved faster percentage growth.
BYD’s registrations increased 98.4%, compared with Tesla’s 72.5% gain.
Both manufacturers benefited from stronger electric vehicle demand, although increasing competition could continue influencing their market positions.
Stellantis and Toyota Record Modest Registration Growth
Among established international automakers, Stellantis delivered a relatively positive performance.
The multinational automotive group recorded a 4.5% increase in registrations, outperforming several other manufacturers operating in Europe.
Toyota Group, the world’s largest automaker by sales volume, reported a more modest 1.7% increase.
However, several other established European carmakers experienced declining registrations during the period.
South Korean manufacturer Hyundai also recorded a decrease, highlighting the uneven performance across the wider automotive industry.
These differences suggest that manufacturers are benefiting from Europe’s changing vehicle preferences to varying degrees.
What Does September’s Growth Mean for European Car Sales?
September’s 10.2% increase in new vehicle registrations provides an encouraging signal for the European automotive market.
Strong demand for battery electric and hybrid vehicles suggests that electrified powertrains could remain important growth drivers in the coming months.
However, one month of stronger registrations does not necessarily guarantee sustained sales growth during the following quarter.
Vehicle affordability, economic conditions, government incentives and competition among manufacturers will continue influencing consumer demand.
Investors will also monitor whether established European automakers can defend their market positions against the expansion of Chinese competitors.
Ultimately, September’s registration figures underline the ongoing transformation of Europe’s automotive industry, with electric and hybrid vehicles capturing an increasingly important share of the market.
