The car market is showing signs of recovery, although it remains below the pre-pandemic level. The preferences of Europeans for cars do not look the same anymore, and the new trends are already consolidating.
Electric Tesla clearly dominates the year 2023, consolidating its leading position in European sales, after an aggressive pricing policy and taking advantage of the electric wave in the automotive world, with state subsidies to boot. With a car technically located at the opposite pole, Dacia it remains in second place in European preferences, with Sandero. All this time, Chinese brands are slowly but surely entering the European market.
The first half of this year recorded the most car registrations after the Covid-19 pandemic, with 6.56 million units, according to JATO Dynamics data. An increase of 976,000 units from the first half of 2022 and 80,000 units from the same period in 2021.
However, the results for 2023 are not yet as high as the years before the pandemic, when 1.86 million more cars were sold (2019) and 2.13 million more in 2018.
“Although registrations are slowly picking up again, difficulties with supply chains as well as other post-pandemic factors mean that the market will not return to its pre-2020 state for some time. A major barrier to achieving these higher volumes is the accessibility of electric vehicles and their higher prices”, say Felipe Munozanalist global la JATO Dynamics.
Tesla still dominates the market
The Tesla Model Y led the brand’s continued popularity, becoming the best-selling passenger car in Europe in June (with 48,200 vehicles registered) and in the first half of 2023, doubling the volume recorded in the same period the previous year. The Tesla model is also the most popular car in the world in the first quarter of the year.
In June, Tesla registered more new cars than other mainstream brands such as Opel, Citroën or Fiat. Sales volume of the Model Y and Model 3 increased by 95% and 117%, respectively, and Tesla achieved the largest increase in market share.
“Increased availability of the cars after the start of local production in Germany, as well as price cuts explain Tesla’s recent rapid growth,” according to Munoz, who believes it’s important to remember that Tesla is the only electric vehicle for many around the world, “and still more people are turning into electric car consumers”.
However, not everything is rosy for Tesla, he says for Panorama Benjamin Kibies, senior analyst at Data Force. He believes that Tesla currently has a technological advantage and sells at prices that European competitors cannot follow. This will secure the top spot for the Y model in the coming months. But it’s not enough.
“Premium cars typically lose a lot of volume over the product life cycle, meaning the Model Y will lag behind the B-segment cars that follow it in the model rankings over time. Tesla’s position also needs to be put into context. While the Model Y is the best-selling model worldwide and in Europe, the brand is very focused on this model,” says Kibies.
Read also: The race against car pollution, between Europe and China. Is Euro 7 an expensive case of ‘much ado about nothing’? The Chinese are looking greedily at the electric car market in Europe, but they only managed to convince 10 Romanians in 2023 INTERACTIVE | How Romania maintains a giant with an underpowered engine: the car industry
Dacia Sandero remains in the top
Dacia Sandero remained in second place in the European ranking, with registrations increasing by 27%, up to 123,400 units. Interestingly, the Sandero is basically the antithesis of Tesla’s Model Y – a small, cheaper hatchback with a combustion engine.
The second place in the overall ranking indicates the income differences between the regions. In France, for example, the Tesla Model Y was almost 37,000 euros (or 231%) more expensive than the Dacia Sandero.
“I think the Sandero will remain one of the best-selling models in Europe, at least for the next three years. Looking at the difficult economic conditions, there will be strong ongoing demand for affordable cars for everyday use. Other manufacturers are phasing out these segments and there doesn’t seem to be an equally strong offering from a new player. Also, BEVs will struggle to get a price below 25,000 euros in the coming years,” explains Benjamin Kibies for Panorama.
Chinese car sales are increasing
Recent, MG, car brand with British pedigree, now in the portfolio of the Chinese at SAIC, also shook the European car market. With 104,300 units registered in the first half of 2023, MG has surpassed other major brands such as Mini, Cupra or Jeep.
The volume of MG 4 cars sold increased by 128% in the first half of 2023, giving MG the second largest increase in market share during this period.
“MG is using both brand recognition in the West and the competitiveness of the Chinese market to its advantage. Its attractive, modern and affordable electric cars in both Western and Eastern markets are a good showcase of how Chinese manufacturers can gain more traction and change the perception of their products,” explains Munoz.
Despite the seemingly explosive growth, Chinese manufacturers currently only account for 0.66% of European car sales, up 0.23% from 0.43% last year, according to JATO Dynamics.
According to Munoz, “it’s not easy to grow continuously in such a competitive market, especially when the brand is unknown and the product needs time to become popular among consumers. The perception of Chinese car manufacturers in the West needs to change to see growth.”
How the other brands are moving
Skoda Octavia also experienced a large increase in market share from the first half of 2022 to the same period in 2023. Followed by Dacia Jogger, Toyota Yaris Cross, Renault Clio, Volkswagen Tiguan, Renault Megane, MG ZS, Volkswagen ID .3 and ID. 4 and Ford Focus.
In contrast, the models that saw the biggest declines were the Toyota RAV4, Peugeot 208, Toyota Corolla, Opel/Vauxhall Crossland, Fiat Panda, Citroën C3, Peugeot 3008, Volkswagen Golf, Renault Zoe and Kia Niro.
“Currently, sales of the Model Y are three times higher than the VW ID.4, which is in 2nd place in electric cars. I don’t see a single model taking over the top spot as a BEV from the Model Y anytime soon. However, this is more of a difference in strategies, where large groups such as VW and Stellantis spread their sales across multiple brands and models. Looking from the perspective of car groups, Tesla is currently in 2nd place, between the VW Group and Stellantis”, concludes Kibies.
What does the future of the car market look like? It is very difficult to estimate, because although the market is now marked by the momentum of electric cars, they do not seem, at least for now, capable of completely replacing older models, such as the Dacia Sandero.
It is true that the European car market is still searching. The rankings, which with some changes usually stayed pretty much the same. Now they have changed radically. Who imagined 10 years ago that the Tesla Model Y and the Dacia Sandero would lead the European top of car sales?
No one knows what the future of the European car will look like, especially since European manufacturers do not seem to be moving too quickly in the electric market, although this is the dominant trend in the EU.
Article edited by Andrei Luca Popescu
To always be aware of what we publish, follow us on Facebook.
2023-08-23 19:39:44
#buy #cars #Tesla #maintains #supremacy #Europe #Sandero #giving #flashes #rearview #mirrors
