JATO Dynamics: Two out of every five top-selling Electric Vehicles (EVs) in May in Europe were made in China

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As per the data from JATO Dynamics regarding 28 European markets, the total number of new registrations for passenger cars in May in Europe was 1,087,699 units, showing a decrease of 2.5% compared to the same month in the previous year. However, the registrations remained higher than those in May 2022 and 2021, which stood at 943,405 and 1,082,934 units respectively.

According to Felipe Munoz, Global Analyst at JATO Dynamics, “Following the global pandemic, the European automobile market has only rebounded to 75%-80% of its original scale. Consequently, numerous factories throughout Europe are not functioning at full capacity, providing an exclusive opportunity for Chinese Original Equipment Manufacturers (OEMs) to market their products across Europe without encountering tariffs.”

The reduction in registrations can be attributed in part to a 10% decrease in registrations of Battery Electric Vehicles (BEVs) and Plug-in Hybrid Vehicles (PHEVs), which dropped from 250,530 in May 2023 to 226,665 in May 2024. BEVs saw the most significant decline in year-on-year registrations, plunging by 11% to 151,237 units, while PHEVs experienced a 7% decrease.

Munoz further stated, “This adverse outcome is linked to the high prices of BEVs and PHEVs, making these vehicles still unattainable for the general public.”

Despite this setback, certain BEV models performed strongly last month. BMW continued to make progress with its iX1, alongside the new i5 and iX2. The BEV volume of the brand was around 1.6 times larger than the total electric models registered by Audi or Mercedes. Volvo secured the third spot among the best-selling BEVs both in May and year-to-date with the EX30.

Surge in Chinese-manufactured BEVs

In the preceding month, registrations of BEVs made in China rose by 25% compared to the previous year, totaling nearly 28,000 units*. Munoz highlighted, “The success of the Volvo EX30 is just one instance of a Chinese-made vehicle making significant strides in the European market.”

In contrast, electric vehicles produced outside of China saw a 16% decrease in registrations year-on-year. Munoz pointed out, “In the last month, the market share of Chinese-made BEVs surged from 13.2% to 18.5% compared to the previous year. It’s remarkable that two Chinese models secured a place in the top five best-selling BEVs in Europe for May. This rise in registrations is likely in anticipation of the impending tariffs set by the European Commission.”

Volvo, BYD, and Smart witnessed the most substantial growth in BEV registrations, while MG, BMW, Dacia, and Polestar experienced declines. MG’s Internal Combustion Engine (ICE) vehicles outperformed its BEVs, with volume increasing by 47% in May and 61% since the beginning of the year. Munoz added, “MG is shifting its focus to non-electric vehicles to maintain its position in Europe. This move is likely a response to the investigation and imminent tariffs by the European Commission. For instance, in the period from January to May 2023, MG registered almost an equal number of electric and combustion cars. A year later, its volume of ICE cars is nearly double that of its BEV registrations.”

The comeback of the Volkswagen Golf

The Volkswagen Golf recorded 20,000 registrations in May, emerging as the second most-registered car after the Volkswagen T-Roc. The volume of Golf registrations increased by 30%, propelled by higher fleet and business registrations, securing the second position in the overall model ranking year-to-date.

Other notable models last month included the Citroen C3, supported by promotions on its previous generation. The Cupra/Seat Leon, Toyota RAV4, Seat Ibiza, Opel/Vauxhall Astra, and Jeep Avenger also exhibited significant year-on-year growth.

Among the new models, the Volvo EX30 performed strongly in May, with over 7,500 units registered. Other noteworthy contenders included the Lexus LBX with over 2,100 units, the BMW i5 with nearly 2,000 units, the new Renault Scenic with 1,631 units, and the Mercedes CLE with 1,581 units. Fiat registered 1,515 units of the 600; Volkswagen recorded 1,239 units of the ID.7; BMW saw 1,144 units of the iX2; the Mitsubishi Colt registered 1,058 units; and the Renault Rafale and Omoda 5 registered 1,003 and 797 units respectively.