European new car registrations continue growth in February

European new car registrations grew for the second consecutive month in 2023, with more than 900,000 models sold across the continent.

Registrations were up 12% when compared to February 2022 and, when combined with January’s registrations, the market is 11% ahead of its performance last year to date.

Analysing the figures, Felipe Munoz, global analyst at Jato Dynamics, said: “While big structural problems persist, results from 2023 so far indicate that consumers are responding positively to more competitive offers in the market. However, rising interest rates - due to hit the market in coming months – may make consumer access to loans more difficult, potentially impacting purchasing decisions.”

The UK was one of only four markets to enjoy double-digit growth, with February recording a 26% uplift in new car sales, according to figures from the Society of Motor Manufacturers and Traders (SMMT).

Sales of electric models grew by 33%, compared to February 2022, while plug-in hybrid sales were down by 5% in the month.

The most popular electric model in February was the Tesla Model Y, which recorded more than 18,400 sales and eclipsed the second-placed VW ID 3, which managed 5,375 registrations. The performance was strong enough to place it as the overall best-selling model for the month.

Munoz, added: “If this trend continues, by the end of this year the Model Y could easily secure a place in the European top 10 bestselling cars ranking.”

Its rise in popularity has resulted in less volume for the Model 3 - which recorded a fall of 49% in contrast to February 2022 registrations, however.

The Dacia Sandero was the second best-selling car in February, with the Peugeot 208 placing third.

Volkswagen remained the strongest brand in Europe, in February, with almost 97,000 cars registered and a growth of 24%.