Total European Auto Industry Sales (All Years)

Total European Passenger Cars Sales & Trends (Since 2005)

According to the European Automobile Manufacturers Association (ACEA), the total passenger car sales in Europe in 2022 was 11.7 million units, a decrease of 14.2% from 2021. This is the third consecutive year of decline in the European passenger car market. The decline in car sales in Europe is due to a number of factors, including the COVID-19 pandemic, chip shortages, and rising inflation. The COVID-19 pandemic has disrupted supply chains and led to production delays, while chip shortages have also affected production. Rising inflation has made cars more expensive, which has also dampened demand.

Despite the decline in car sales, there are some positive trends in the European passenger car market. The market share of electric cars has increased significantly in recent years, and it is expected to continue to grow in the coming years. In 2022, electric cars accounted for 19% of new car sales in Europe, up from 1% in 2019. The European passenger car market is expected to recover in the coming years, but it is unlikely to return to the levels seen before the COVID-19 pandemic. The market is expected to grow at a slower pace than in previous years, and the shift to electric cars is expected to continue.

European Automotive Market Trends

We continue to see a shift towards electrification.  The European market has seen a rapid growth in the adoption of electric vehicles (EVs), especially towards the latter half of the decade. This was driven by stricter emission regulations, increased public awareness about environmental issues, incentives and subsidies, improvements in EV infrastructure, and the development of affordable and long-range EVs. Hybrids and Plug-in Hybrids (PHEVs) have also gained traction as intermediate options for consumers not yet ready to fully transition to EVs but looking to benefit from some of the advantages of electrification.

The EU has set ambitious targets for CO2 reductions for new cars. This has driven manufacturers to invest in research and development to produce more fuel-efficient vehicles and to rapidly expand their electric and hybrid offerings. Diesel vehicle sales have been on a decline in Europe following the “Dieselgate” scandal involving Volkswagen in 2015. Subsequent revelations about the harmful effects of NOx emissions and stricter emission norms further pushed consumers and manufacturers away from diesel.

European consumers, like those in other parts of the world, have shown an increased preference for SUVs and crossovers. The market saw a proliferation of these models, ranging from compact to luxury segments.

Modern cars have seen a surge in onboard technology. Features such as advanced driver assistance systems (ADAS), infotainment systems with smartphone integration, and over-the-air updates became more standard. Car-sharing services and subscription models began to offer an alternative to traditional car ownership. Services like Zipcar, Car2Go, and manufacturer-backed programs allowed people to use cars without owning them, catering to urban dwellers and younger consumers who prioritize access over ownership.

The COVID-19 pandemic in 2020 led to a temporary shutdown of production facilities and a decline in car sales. However, it also accelerated digital sales channels and made automakers reconsider their global supply chain strategies. There’s a growing trend towards adopting a circular economy approach in the automotive sector. This includes efforts towards recycling and repurposing materials, especially in EV batteries, and a focus on sustainable production methods.

European Passenger Car Sales

Charts & Trends

European Passenger Car Sales by Country