The infamous scandal at the VW Group marked the turning point for diesel engines in Europe. Coupled with increasingly stringent emissions regulations, diesel-powered vehicles are now facing a precarious future, leading many automakers to phase them out, especially in smaller car segments. Recent data from the European Automobile Manufacturers' Association reveals a clear decline in demand for diesel cars.
In June, the market share for diesels in European Union countries dropped to a mere 13.4 percent, a significant decline from the 17.4 percent recorded in June 2022. Interestingly, this decline opened the path for purely electric vehicles to overtake diesels for the first time ever, accounting for 15.1 percent of the total market share, up from 10.7 percent the previous year. Self-charging hybrids also gained popularity, commanding a 24.3 percent market share, while plug-in hybrid electric vehicles (PHEVs) represented 7.9 percent of total demand.
Gasoline-powered vehicles, however, remain dominant for now, boasting over a third of all sales at 36.3 percent. Despite a rise in sales numbers, gasoline's market share has been impacted by the surge in electric vehicles, decreasing from 38.5 percent in the previous year. The ACEA study highlights a notable 10.3 percent increase in diesel car sales in Germany and Central European markets.
Surprisingly, Romania witnessed the most significant growth in diesel car sales, with an impressive 22.4 percent surge compared to the same month last year. Overall, new car sales across all powertrains in the EU surged by 17.9 percent during the first six months of 2023, reaching 5.4 million vehicles. Nevertheless, this figure remains 21 percent lower than the pre-pandemic levels of the first half of 2019.
The ACEA also notes that supply chain bottlenecks are gradually easing, though some models still experience longer waiting times. As the Euro 7 regulations loom for 2025, automakers are expected to accelerate the transition to electric vehicles, leading to fewer internal combustion engine cars on the market. The VW Group has already warned that B-segment cars might be at risk due to the higher costs associated with adapting engines to meet the stringent regulations. Furthermore, starting from 2035, EU automakers will be prohibited from selling new vehicles that emit harmful emissions.
Source: ACEA