European car market: slight growth in July, but Italy lags behind in the electric transition

Slight growth for the European car market in July 2024

The European car market recorded a slight growth in July 2024, with an increase of 0.4% compared to the same period last year. Registrations reached 1,025,290 units, up from 1,021,381 in July 2023. However, this figure is still significantly lower than pre-pandemic levels, with a 22.9% decline compared to July 2019. In the first seven months of 2024, total registrations exceeded 7.9 million units, marking a 3.9% increase over the same period in 2023.

Varied performance among major European markets

The market’s performance in July showed significant differences among major European countries. Italy registered a 4.7% growth, followed by Spain (+3.4%) and the United Kingdom (+2.5%). Conversely, Germany and France saw declines of 2.1% and 2.3% respectively. Looking at the first seven months of the year, all major markets show positive signs, with increases ranging from 2.2% in France to 5.6% in Spain.

Italy lags behind in electric vehicle adoption

Despite market growth, Italy continues to lag in the transition to electric vehicles. In July 2024, the share of electric vehicles (ECV) in Italy reached only 7.3% of total registrations, with 3.4% for battery electric vehicles (BEV) and 3.9% for plug-in hybrids (PHEV). This figure is significantly lower than in other major European markets, such as the United Kingdom, where ECV share stands at 27.4%, and France at 20.8%.

UNRAE’s demands to support the energy transition

The UNRAE (Italian Foreign Car Manufacturers’ Association) continues to stress the importance of concrete measures to facilitate the transition to low-emission vehicles. During the Automotive Roundtable in August, UNRAE reiterated the need to make the remaining 240 million euros in incentives for 2024 available and to recover the 250 million euros taken by the Cohesion Decree. Additionally, a reform of the tax regime for company cars has been requested to make Italian companies more competitive compared to other European markets.

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