Europe sales rise 19% in June on EV demand, easing supply chains

New-car registrations in the EU, EFTA and U.K. markets rose in June as growing demand for electric cars and improved parts supply helped fuel an 11th consecutive month of growth.

Registrations increased 19 percent to 1.27 million vehicles, industry lobbying group ACEA said in data released on Wednesday.

Sales of battery-electric vehicles surged 55 percent, while deliveries of diesel cars declined 10 percent.

Automakers are still working down order books as longstanding shortages of critical components like semiconductors have eased.

The outlook, though, is clouded by prospects that supply-chain logjams could return amid surging demand for EVs, and consumers may cut back spending due to higher costs of living and slowing global growth.

Buyers in Germany registered 52,988 full-electric cars in June, the most in Europe and a 64 percent increase from the same month last year.

France also contributed to EV growth with 33,280 sales, while the Netherlands added 13,892 battery-powered cars.

Including all fuel types, Volkswagen Group sold the most passenger cars in the region, logging 325,612 deliveries, a 27 percent increase from last year.
Stellantis sales declined 2.5 percent to 210,495 — still enough to come in second overall.

Tesla, which plans to expand production capacity at its factory in Germany, sold 47,606 vehicles, pulling ahead of local brands Fiat and Citroen and more than doubling registrations from a year ago.

Through June, European sales rose 18 percent to 6.6 million.