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 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 like 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. Before this 10-month run of expansion, sales shrank for 13 consecutive months.
After battling to keep production lines running, attention has shifted to risk that consumers cut back as a result of sharply higher living costs, including soaring energy prices.
Germany’s economy shrank during the winter months with household spending dropping on food, beverages and apparel. More signs of a cool down have emerged since, 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. Tesla pulled ahead of the Nissan and Volvo brands with 138,294 cars registered.
Renault SA has been the big gainer among Europe’s top automotive incumbents with sales jumping 31% to 515,340, trailing only Volkswagen AG and Stellantis NV. Through the first five months of last year, the French carmaker had slipped behind Hyundai Motor Group.
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.
(Updates with background in the fifth paragraph.)
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