Europe's Most Popular Cars of 2023
Newly Launched Brands and the Strong Demand for Battery Electric Vehicles Cause Significant Changes in the Continent's Automotive Industry.
The European automotive industry faced notable shifts in 2023 due to the entrance of new brands and the rising demand and influence of battery electric vehicles (BEVs). Registrations of new passenger cars reached 12.8 million units across 28 European countries (EU members plus the United Kingdom, Norway, and Switzerland), marking a 14% increase from the previous year.
Felipe Munoz, a global analyst at JATO Dynamics, remarked, "The European car market seems to be stabilizing. Supply chain issues are largely under control now, and consumers have become accustomed to waiting longer for new vehicle deliveries. Despite this, it is unlikely that volumes in the near future will surpass the 15 million units registered in 2019. Purchasing a vehicle has become more expensive, and attitudes toward ownership continue to evolve."
China Makes Its Mark on the Market
A significant shift in the European automotive industry in 2023 was the continued expansion of Chinese car brands. Last year, seven new Chinese brands entered the market, joining the 23 already available in 2022. Overall, Chinese manufacturers sold 322,000 vehicles in 2023, a 79% increase from the previous year, achieving a market share of 2.6%, compared to 1.7% in 2022.
However, of the 30 Chinese brands available in Europe, only eight registered sales volumes above 1,000 units. MG alone accounted for 72% of all Chinese sales. The brand, founded in the United Kingdom but now owned by China's SAIC Motor, doubled its volume from 113,000 to 232,000 units last year, reaching a market share of 1.81%, making it currently the twentieth most popular brand in Europe. MG surpassed Cupra, Suzuki, Mini, and Mazda, ending up just 14,000 units behind Seat in the overall ranking.
Despite its British name, the UK remained MG's largest European market, with 35% of all registrations, but the brand also saw rapid growth in France (165%), Italy (311%), and Spain (321%). MG's ZS became the tenth most popular small SUV in Europe, and the MG 4 ranked as the continent's fourth most popular electric vehicle.
Nearly as Many Electric Cars Sold as Diesels
The growth of the European new car market in 2023 was significantly driven by electric vehicles (EVs), which comprised 15.7% of the total market with 2,011 million units registered. This set a new record for the category and was nearly on par with the 2.05 million diesel cars registered. These results confirm Europe as the world's second-largest electric vehicle market, following China with over 5 million units and ahead of the USA with 1.07 million. Corporate fleets and businesses bought 51% more electric vehicles, while private purchases increased by only 4%. Notably, private buyers made up just 39% of all EV registrations, a decrease of 9 percentage points from 2022.
Riding the wave of electric vehicle purchases, Tesla continued its remarkable rise in the brand rankings, moving from the 18th to the 16th place within a year, overtaking Nissan and Volvo. The American manufacturer sold 362,000 vehicles in Europe in 2023 – a 56% increase from the previous year – achieving a record market share of 2.83%, up from 2.06% in 2022. Within the EV segment, Tesla gained the largest market share, followed by SAIC (MG), BMW Group, Toyota, and Mercedes-Benz. Conversely, the Renault Group, Stellantis, Hyundai, Nissan, and Ford saw the biggest losses in market share.
Which Were the Most Popular Models?
The Tesla Model Y was Europe's best-selling car of 2023, making history as the first fully electric vehicle to lead the list and the first time a non-European model has triumphed on the continent.
According to Jato Dynamics industry analyst data, the crossover, which has been on sale since 2020 and is manufactured in the United States, China, and Germany, closed the year with 251.6 thousand units sold, an 84% increase from 2022, partly due to ongoing price reductions. The Tesla Model Y's success is particularly striking as it was the only electric model to make it into the top 30 best-selling cars. The Model 3, the sister model of the Model Y, was the second best-selling electric car with 101 thousand units, ranking 32nd overall. The Dacia Sandero, one of the cheapest new cars, came in second with 235 thousand units sold, followed by the Volkswagen T-Roc with 205 thousand on the podium.
Volkswagen once again finished the year as Europe's favorite brand with 1.344 million units sold, followed by Toyota with 820 thousand and Audi with 731 thousand.
Felipe Munoz, a global analyst at JATO Dynamics, remarked, "The European car market seems to be stabilizing. Supply chain issues are largely under control now, and consumers have become accustomed to waiting longer for new vehicle deliveries. Despite this, it is unlikely that volumes in the near future will surpass the 15 million units registered in 2019. Purchasing a vehicle has become more expensive, and attitudes toward ownership continue to evolve."
China Makes Its Mark on the Market
A significant shift in the European automotive industry in 2023 was the continued expansion of Chinese car brands. Last year, seven new Chinese brands entered the market, joining the 23 already available in 2022. Overall, Chinese manufacturers sold 322,000 vehicles in 2023, a 79% increase from the previous year, achieving a market share of 2.6%, compared to 1.7% in 2022.
However, of the 30 Chinese brands available in Europe, only eight registered sales volumes above 1,000 units. MG alone accounted for 72% of all Chinese sales. The brand, founded in the United Kingdom but now owned by China's SAIC Motor, doubled its volume from 113,000 to 232,000 units last year, reaching a market share of 1.81%, making it currently the twentieth most popular brand in Europe. MG surpassed Cupra, Suzuki, Mini, and Mazda, ending up just 14,000 units behind Seat in the overall ranking.
Despite its British name, the UK remained MG's largest European market, with 35% of all registrations, but the brand also saw rapid growth in France (165%), Italy (311%), and Spain (321%). MG's ZS became the tenth most popular small SUV in Europe, and the MG 4 ranked as the continent's fourth most popular electric vehicle.
Nearly as Many Electric Cars Sold as Diesels
The growth of the European new car market in 2023 was significantly driven by electric vehicles (EVs), which comprised 15.7% of the total market with 2,011 million units registered. This set a new record for the category and was nearly on par with the 2.05 million diesel cars registered. These results confirm Europe as the world's second-largest electric vehicle market, following China with over 5 million units and ahead of the USA with 1.07 million. Corporate fleets and businesses bought 51% more electric vehicles, while private purchases increased by only 4%. Notably, private buyers made up just 39% of all EV registrations, a decrease of 9 percentage points from 2022.
Riding the wave of electric vehicle purchases, Tesla continued its remarkable rise in the brand rankings, moving from the 18th to the 16th place within a year, overtaking Nissan and Volvo. The American manufacturer sold 362,000 vehicles in Europe in 2023 – a 56% increase from the previous year – achieving a record market share of 2.83%, up from 2.06% in 2022. Within the EV segment, Tesla gained the largest market share, followed by SAIC (MG), BMW Group, Toyota, and Mercedes-Benz. Conversely, the Renault Group, Stellantis, Hyundai, Nissan, and Ford saw the biggest losses in market share.
Which Were the Most Popular Models?
The Tesla Model Y was Europe's best-selling car of 2023, making history as the first fully electric vehicle to lead the list and the first time a non-European model has triumphed on the continent.
According to Jato Dynamics industry analyst data, the crossover, which has been on sale since 2020 and is manufactured in the United States, China, and Germany, closed the year with 251.6 thousand units sold, an 84% increase from 2022, partly due to ongoing price reductions. The Tesla Model Y's success is particularly striking as it was the only electric model to make it into the top 30 best-selling cars. The Model 3, the sister model of the Model Y, was the second best-selling electric car with 101 thousand units, ranking 32nd overall. The Dacia Sandero, one of the cheapest new cars, came in second with 235 thousand units sold, followed by the Volkswagen T-Roc with 205 thousand on the podium.
Volkswagen once again finished the year as Europe's favorite brand with 1.344 million units sold, followed by Toyota with 820 thousand and Audi with 731 thousand.
