European Car Market Sees Growth in July 2024 with Increased Demand for SUVs and Dacia Sandero Leading Sales

The European car market experienced a modest growth of 2% in July 2024 compared to the same period in 2023. JATO Dynamics reported that 1.03 million units were registered across 28 European markets, bringing the total year-to-date registrations to nearly 7.9 million units.

European Car Market Sees Growth in July 2024 with Increased Demand for SUVs and Dacia Sandero Leading Sales

Country-Specific Trends: Poland, Portugal, and Slovakia Lead the Way

Growth was particularly strong in countries like Poland (+19%), Portugal (+27%), and Slovakia (+12%). Meanwhile, the UK, Italy, and Spain also saw slight increases in vehicle registrations, each growing by 3%, 5%, and 5% respectively. However, not all countries experienced growth. Registrations fell in Germany (-2%), France (-2%), Belgium (-7%), the Netherlands (-4%), and Ireland (-5%).

Surge in SUV Popularity: A New Record for the Segment

SUVs continued their decade-long trend of increasing popularity, reaching a new milestone in July 2024 by accounting for 54% of all vehicle registrations. In total, 554,000 new SUVs were registered last month, marking a 6% increase from July 2023. Year-to-date, SUV registrations reached 4.2 million units, a 5% increase compared to the previous year. The Volkswagen Group dominated the SUV market with 26% of registrations, followed by Hyundai-Kia with 12% and Stellantis with 11.5%. Compact SUVs (C-SUVs) were the most in-demand, registering 210,600 units, while small SUVs (B-SUVs) saw a 14% increase with 204,300 units registered.

Mixed Performance in Electric Vehicles: BMW Outshines Tesla

The electric vehicle (EV) market in Europe faced challenges in July 2024, with market share dropping from 14.6% in July 2023 to 13.5% last month. JATO Dynamics recorded 139,300 new electric car registrations, a 6% decrease from the previous year. BMW led the EV brand ranking with a 35% year-on-year increase, while Tesla saw a 16% decline. Although the Tesla Model Y and Model 3 remained dominant in the year-to-date battery electric vehicle (BEV) rankings, the Model Y dropped to ninth place in July’s overall vehicle ranking. BMW’s new models, including the iX1, i4, and i5, performed well, with the iX2 registering over 1,300 units.

Dacia Sandero Tops the Charts: A Strong Month for Hatchbacks and SUVs

In July 2024, the Dacia Sandero emerged as Europe’s most popular car, with 22,400 units sold, a 34% increase from the previous year. The Volkswagen T-Roc followed as the second best-selling car. The top 10 best-performing cars in July included an even mix of SUVs and hatchbacks, with models like the Volkswagen T-Cross, Toyota C-HR, BMW X1, and Peugeot 3008 making strong showings. On the flip side, several models experienced declines, including the Ford Puma, Tesla Model Y, Fiat Panda, and Audi A3.

New Entrants in the EV Market: Volvo EX30 and Others Gain Ground

The Volvo EX30 became Europe’s second-most popular EV in July, with nearly 6,600 registrations. Other noteworthy performances included MG with over 4,000 units of the MG3, Fiat with 2,636 units of the 600, BMW with 2,302 units of the i5, Renault with 2,235 units of its new Scenic model, and Lexus with 2,186 units of the LBX.

Challenges Ahead for the EV Market

Felipe Munoz, Global Analyst at JATO Dynamics, highlighted the challenges facing the EV market, noting that uncertainty around incentives and the future of EVs continues to deter consumers. The low residual value of EVs also contributed to the decline observed in July. Despite these challenges, brands like BMW are pushing forward with strong performances, indicating that the market may continue to evolve in the coming months.