Passenger car sales in selected European countries 2022-2023
Germany remained the largest passenger car market in 2023: German customers bought over 2.84 million units that year. Hungary and Norway were the only countries to record a drop in sales through 2023, with Norway's passenger car sales volume decreasing by 27.2 percent, which was the result of a slump accross propulsion type in the country.
Volkswagen tops EU sales in 2023
Volkswagen emerged as the best-selling brand in the European Union (EU) throughout 2023, with nearly 1.2 million unit sales. Volkswagen was followed by Toyota and Renault. Furthermore, in May 2023, the Dacia Sandero was the top-selling passenger vehicle model in Europe, with 21,745 units sold. This indicates a significant preference among European customers for petrol hatchbacks.
On the other hand, there has been a pivot towards electrified vehicles in Europe. In 2023, 48 percent of new car registrations in the EU were electrified to some degree. This is influenced by policies like the EU's ban on new fossil-fuel car sales from 2035, intended to boost sustainability. Even though electric vehicle adoption has been slow in Europe, Norway managed EV transformation much faster with significant financial subsidies to EV buyers. In 2023, 82 percent of passenger car sales in Norway were fully electric. This was the highest share of battery-electric cars in Europe, and comes after Norway rolled back the subsidies that supported the success of electric vehicles in the country.
Germany dominates European car industry
By 2023, Germany had solidified its leadership in car manufacturing in Europe, producing approximately 4.11 million passenger cars, nearly double its closest competitor, Spain. Furthermore, in 2021, Germany had the largest passenger vehicle fleet in Europe, with 48.5 million units. Besides leading in production, German car manufacturers also excel in financial performance and brand value. Volkswagen was the top global automaker in terms of revenue, with 293.5 billion U.S. dollars of revenue in 2022. Additionally, German brands like Mercedes-Benz and BMW ranked as some of the most valuable worldwide, with brand values of 61 and 51 billion U.S. dollars, respectively.
