In June, passenger car registration in the EU increased by 17.9% YoY, totaling 1,045,072 units. Meanwhile, looking at the first half of 2023, EU registration of new cars increased by 17.9% YoY overall. In Croatia in the mentioned period, passenger car registration reported a much more pronounced increase of 46.2% YoY.

New passenger car registration by month (May 2018 – June 2023)

Source: ACEA, InterCapital Research

In June 2023, passenger car registration in the EU increased by 17.9% YoY, totaling 1,045,072 units. The largest increase reported in the EU in June was again reported in Germany, where the absolute increase amounted to 39.8k units, representing a 19.2% YoY increase. Germany is followed by Italy where the increase amounted to 28k units (23.1% YoY), and up next is France where the increase was 18.7k (14.8% YoY). Finally, the last major region within the EU, Spain, also reported growth of 11.8k units (13.3% YoY)

When observing the first half of 2023, the situation is pretty similar – EU registration of new cars increased by 17.9% YoY.  However, the previous year was influenced by the semiconductor shortage, which started all the way back in 2021. Consequently, most EU markets showed strong growth compared to previous years. When observing the whole period, each of the major markets within the EU noted a positive development. Germany reported solid growth (12.8% YoY), while the remaining major markets, Spain, Italy, and France all noted even more pronounced growth of 24%, 22.8%, and 15.3% respectively. Smaller regions mostly noted double-digit growth. In June, the only region that reported a YoY decrease in units was Hungary (-1.4% YoY).

Looking at the region, when observing H1 2023, Croatia reported an astounding increase of 46.2% YoY, amounting to a growth of 10.6k units. Slovenia reported slightly underwhelming numbers, recording a 5.7% YoY growth, amounting to 1.5k units.

Car market share by fuel type in June 2023

Source: ACEA, InterCapital Research

During June, we could see hybrid and electric vehicles gaining further market share. The battery electric car market has overtaken diesel, climbing to 15.1% market share, representing growth of 4.4 p.p. Furthermore, hybrids now account for 24.3% of the market, being the second most popular choice. However, for now, petrol cars still retain the largest share at 36.3%, though we note it’s down 0.2 p.p. from data collected in May 2023.