After navigating through three years of supply chain difficulties, the European automotive industry has witnessed a turnaround in 2023.
The resolution of electronic component shortages has fuelled this recovery, breathing new life into car manufacturing across the continent.
Significantly, the new car sales in Europe have seen an uptick, with a 13.9% increase recorded in 2023. This surge is attributed largely to the growing popularity of hybrid and electric models, alongside a sustained interest in petrol-powered vehicles.
Cyprus has reported a 26.3% increase in electric and hybrid car sales compared to the previous year, as per the latest data from the European Automobile Manufacturers Association (ACEA).
This reflects a gradual shift in Cypriot consumer preferences towards more environmentally friendly vehicles. Notably, plug-in hybrid cars have seen a dramatic rise of 121.2% in sales.
Battery electric vehicles have also gained traction in Cyprus, with sales rising by 115.9% in 2023, mirroring a broader European trend. Across Europe, the total volume of electric vehicles sold in 2023 surpassed 1.5 million units, marking a substantial 37% increase from the previous year.
While petrol-powered cars in Cyprus enjoyed a 12.2% increase in sales, diesel-powered vehicles faced a 17.6% decrease, indicating a shift in consumer preferences.
The broader European car market concluded 2023 on a high note, with a steady growth of 13.9%, totalling 10.5 million units sold. This expansion was consistent across almost all EU markets, with Hungary being a notable exception, experiencing a 3.4% decline.
Double-digit gains were recorded in most markets, including three of the largest: Italy (+18.9%), Spain (+16.7%), and France (+16.1%). Conversely, Germany recorded a modest rise of 7.3% on an annual basis, affected by weaker performances in December.
Looking ahead, with the impending 2035 ban on the sale of new thermal engine vehicles in Europe, manufacturers are increasingly focusing on expanding their range of hybrid and electric vehicles.
