European car sales rise in March - Electric vehicles "compensate" for the decline in diesel cars
New car sales in Europe rose 2.8% in March, driven by double-digit increases in Britain and Spain. Industry data showed that a surge in electric vehicle registrations during the month offset a decline in sales of petrol and diesel cars.
Sales of fully electric cars rose by 23.6% in the month, data from the European Automobile Manufacturers Association (ACEA) showed.
As they struggle to reduce high costs in domestic markets and competition from China, European carmakers are now grappling with the effects of U.S. President Donald Trump's 25% tariffs on vehicle imports, darkening the outlook for the industry.
Trump's 145% tax on Chinese imports and Beijing's retaliatory tariffs have also lowered global growth forecasts, exposing auto companies to new risks.
March sales in the European Union, Britain and the European Free Trade Association (EFTA) rose to 1.42 million cars after falling for two months. Registrations at Volkswagen and Renault rose by 10.3% and 13.0% respectively, while Stellantis fell by 5.9%.
Tesla's sales fell for the third consecutive month, down 28.2% year-on-year, while its share of the total market shrank to 2%, from 2.9% a year earlier.
In the EU, total car sales fell by 0.2% year-on-year, falling for the third consecutive month, although registrations of battery electric and hybrid cars rose by 17.1%, 23.9% respectively.
Electric vehicles, sold within the bloc, accounted for 59.2% of passenger car registrations in March, up from 49.1% the previous year.
Among the largest EU markets, sales in Spain and Italy rose by 23.2% and 6.3% respectively, while in France and Germany they fell by 14.5% and 3.9%. In Britain, registrations rose by 12.4%.
Market experts say a growing interest in electric cars in Europe, the world's second-largest electric vehicle market, is largely due to new EU emissions targets and the launch of cheaper electric models, although the bloc has recently proposed relaxing the targets.
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