Europe’s new car market has seen a surge in hybrid sales in Q1 while EV demand falters, according to JATO Dynamics.
In Q1, 382,700 hybrids were registered which is the highest number of quarterly registrations for the category since 2021. Volumes were up 18% on Q1 2023. Consumers feel hybrid cars have an advantage over EVs as they are self-charging and, on average, 27% cheaper than an electric model.
Felipe Munoz, global analyst at JATO Dynamics, said: “Although registration figures for the first quarter of 2024 paint a reasonably positive picture, the data for March is concerning.
“The average price of a new car is still prohibitively high, and consumers are understandably hesitant about making the shift from petrol- and diesel-powered vehicles to electric models.
“Instead of embracing the shift, uncertainty over regulation and a lack of clarity on incentives available for EVs in many European markets is putting off potential buyers. Concerns about the lifecycle of the batteries in these vehicles is another source of concern among consumers.”
In March 2024, electric cars produced by Chinese brands represented 6.1% of total BEV registrations. MG accounted for 61% of Chinese EV registrations in March, followed by BYD (24%) and Great Wall (5%). MG registrations declined by 38% year on year, while registrations of BYD vehicles rose from 427 units to 2,892 units over the same period.
In general, the new car market experienced a slowdown in demand in Q1 due to persistently high inflation and interest rates.
In March, registrations totalled 1,377,541 units – a decrease of 2.7% compared to the same month last year but Q1 registrations were up 4.8% on Q1 2023, with 3,380,048 units registered.
