Auto sales in Europe continued their upward trajectory in May, rising for the 10th month in a row, as demand for electric cars outpaced the broader market.
(Bloomberg) — Auto sales in Europe continued their upward trajectory in May, rising for the 10th month in a row, as demand for electric cars outpaced the broader market.
New-car registrations increased more than 18% to 1.12 million vehicles, the European Automobile Manufacturers’ Association said Wednesday. Sales of battery-electric vehicles jumped 66% last month as carmakers benefited from improved supply of components, though some pockets of shortages remain.
Tesla Inc. has led the EV advance, more than doubling sales during the first five months of the year thanks in part to aggressive price cuts. Other plug-in car lines, including SAIC Motor Corp.’s MG brand, also are popular with buyers, according to Felipe Munoz, an analyst at forecaster Jato Dynamics.
“Consumers appear to be responding well to wider competitive offers and good deals presented by the two carmakers,” he said.
Carmakers are churning out more vehicles after longstanding supply-chain problems finally started to ease. After battling to keep production lines running, attention has shifted to consumers buckling under sharply higher living costs led by soaring energy prices.
Germany’s economy shrank during the winter months with household spending dropping on food, beverages and apparel. There are further signs of a cool down, with chemical output in Europe’s largest economy remaining a fifth below historical levels.
Almost 14% of new cars registered in the first five months of the year were battery-electric vehicles, with sales climbing more than 40% to just over 730,000 units.
Among major markets, Italy and Germany led the overall sales rise of all types of vehicles in May with gains of 23% and 19%, respectively.
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