After the repeated blows received by the European car market in recent years due to the pandemic and the lack of raw materials, the first, small, but already clear signs of recovery are visible. Electric vehicles continue to gain ground in the Old Continent, both in retail and corporate sales, depending on the incentives provided in each market. In any case, and in all European markets, including the Greek one, leasing continues to maintain its excellent dynamics, being an alternative way to buy a new car, with significant benefits and advantages compared to the traditional way of buying.

Below we will see how sales in the European market developed in the first quarter of the year and, most importantly, which technologies won the preference of buyers. These trends also have a strong impact on the corporate sales market, as leasing companies calculate the residual value of their cars based on demand for them in the next three to four years.

Overall, from January to April 2023, the number of new car registrations in all markets of the European Union increased by 17.8% compared to the corresponding period last year, reaching 3.5 million units in absolute terms.

However, despite the positive commercial performance of the market compared to 2022 levels, new car sales are still down 22.8% from pre-pandemic levels – and especially compared to 2019 – highlighting the ongoing challenges and pressures, with faced by the industry. First of all, because of the rising cost of energy and materials, as well as because of the inflation that continues to rage on the continent.

Electrification: the magic word

In addition to battery electric vehicles (BEVs), which produce zero emissions and run entirely on electricity, with high-capacity batteries and one or more electric motors, the integration of electric technology as a primary or secondary source of propulsion into conventional combustion engine vehicles continues to play a leading role. both commercially and to “clean up” Europe in the field of mobility. In general, hybrid vehicles fall into several categories based on the type of electrified technology they use.

The first “tier” consists of mild hybrid vehicles, also known as Mild Hybrids. This is the first and simplest level of electrification, with the cars of this particular “hybrid” being based on a 12V or 48V electrical system in which a small battery and a belt alternator provide a combined 5-10% reduction in liquid fuel consumption. from the thermal section of the drive. So, small but real environmental benefits. Due to the low electric power, there is no possibility of a purely electric movement here, and the Mild Hybrid system plays an auxiliary role in starting and overtaking.

The next level of electrification, and currently the most common in Europe, are hybrid electric vehicles (HEVs). Here, cars are based on self-charging systems, where the central control unit constantly decides to manage the energy without the intervention of an external source to charge the battery. HEVs have greater energy storage capacity and higher electric motor performance than mild hybrid vehicles, providing pure electric propulsion for shorter or longer intervals and distances.

The third and…higher stage of electrification of modern vehicles is Plug-in Hybrid Electric Vehicles (PHEVs), which are based on rechargeable systems, where electricity comes mainly from an external source (a socket or charger) and much less often by charging from a thermal branch. car drive. The battery of PHEVs is much larger than that of HEVs, which allows them to drive purely on electricity and therefore zero emissions for a distance of 40 to 60 km. At the same time, they have one or more electric motors, which increases the performance of the vehicle. If indeed one of them is installed on the rear wheels, then the system, and hence the car itself, has all-wheel drive.

Market movement

In April, the number of new battery electric vehicle (BEV) registrations in the EU increased significantly (+51.9%) compared to the corresponding month in 2022, reaching 94,561 units in absolute terms. Thus, the share of these vehicles in total new car sales in the EU increased from 9.1% to 11.8%. Most EU markets posted double-digit and triple-digit percentage gains in EV sales, including the top two: France (+34.8%) and Germany (+34.1%). In total, in the first quarter of 2023 and with an increase of 45.1% compared to the corresponding period in 2022, 415,579 BEMs were registered.

Hybrid Electric Vehicles (HEVs) with self-charging powertrains continued…to grow in April, with sales up 22.7% to 199,407 units. This increase is mainly due to double-digit improvements in their trading rates in four key EU markets: Germany (+35.9%), France (+28.6%), Italy (+28.3%) and Spain (+14.4%). %). As a result, HEV’s market share is currently 24.8%, up from 23.7% in April 2022. Despite an increase of 4.3 percentage points recorded in March 2023, the plug-in hybrid (PHEV) market in the EU contracted in April (-5.5%), with sales falling significantly in Germany (-45.7%), the largest market for this type of vehicle. Consequently, the overall market share of PHEVs in the EU fell from 9.2% last April to 7.4% in the same month of 2023.

The month for registration of new petrol vehicles in the EU was “good” with sales up 17.3% to 306,757 units. Thus, cars of a comparable type last month held a share of 38.2% – the same share as in April 2022. The increase in their sales is mainly due to their very good performance in the four main EU markets – and especially in Italy (+39.3%) and France (+31.3%). Since the beginning of the year, sales of gasoline cars in the EU have reached almost 1.3 million units, up 18% compared to the same period in 2022. On the contrary, the diesel car market remained almost stable in April (+0.03%), despite the positive results in the two largest EU markets: Italy (+21.5%) and Germany (+2.4%). Diesel vehicles account for just 14.7% of total EU sales compared to 17.2% in April 2022.

The future is electricity

Given the “expansive” sentiment of green mobility through the chariot of electrification and the need to comply with increasingly stringent EU climate protection targets, low and zero emission vehicles will continually increase their commercial presence under the burden of traditional solutions until they become the protagonists. if not the absolute rulers of the European market since the middle of the decade and with the time horizon of its end. What is expected to be accelerated both by the inevitable normalization of sales prices and by the reduction in the cost of producing batteries, and above all by the expansion of green public charging infrastructures that will supply them with energy on a daily basis.

→ Electrification trends in Greek leasing

The general trend recorded in the first months of 2023 regarding corporate sales in our country strongly confirms the general trend towards electrification that is typical for the entire European automotive market, as well as for purely electric models (EV). are already recording double-digit growth rates, while the sign is positive compared to 2022 levels for plug-in hybrid vehicles (PHEVs). All this leads to the fact that the share of electric vehicles in the total sales of the company in our country is more than 15%, and the share of plug-in hybrids, in turn, exceeds 10%. In confirmation of its electrified course, there is a downward trend in corporate sales of diesel vehicles, which record a drop of up to 10% in our country in 2023.