PARIS: New-car registrations in Europe ticked up for a fifth straight month in November, putting the region on course for a fourth year of gains led by growth across electrified models.
Buyers registered 2.4% more vehicles from a year earlier, bringing sales for the month to 1.08 million, the European Automobile Manufacturers' Association said.
Spain and Germany recorded the biggest gains among major markets, while Italy stagnated. France and the UK posted slight declines.
Sales of battery-electric vehicles jumped 37%, outstripping growth for plug-in hybrids, which rose by 34%, for the first time since March.
New lower-priced battery models like Citroën's ë-C3 and Renault SA's R5 E-Tech are boosting demand.
The gains offset declines in registrations of petrol-powered vehicles across the region.
Europe's long-term EV sales outlook is shifting after the European Commission proposed to scrap an effective ban on sales of new combustion-engine cars from 2035.
The plans still need to pass several hurdles before new targets on CO2 fleet reductions are finalised.
Several European Union member states have already signaled they will push for more changes, particularly around the treatment of plug-in hybrids and compliance mechanisms.
Manufacturers including Volkswagen, BYD and Renault have seen their EV market share grow at the expense of Tesla, BMW and Mercedes, Jefferies analysts led by Philippe Houchois wrote in a note last week, with mass-market manufacturers expanding their offering of lower-priced models.
Renault, following the popular R5 E-Tech city car, will start sales of the electric Twingo next year. It'll retail for less than €20,000 (US$23,499 or RM95,476).
Into next year, planned government incentives for EV sales in Germany and Spain are poised to have a positive impact.
"Europe could post some of the strongest growth rates for" battery-only cars, Houchois said.
There are some brighter spots for the region's economy too, with consumers expected to help drive growth at a time when global trade tensions are hurting exports.
Last week, European Central Bank officials raised forecasts for expansion in the next two years.
While that spells relief for the car industry, demand across Europe still hasn't recovered to pre-pandemic levels as prices rise and buyers defer purchases because of a jump in the cost of living.
"High new car prices, a weak economy and the multitude of political, social and economic crises are taking their toll," Constantin M. Gall, a consultant at EY who specialises in the automotive sector, said about Germany, the region's biggest market.
"Both private individuals and companies are reluctant to make investment decisions."
Consumers are set for more purchasing options down the line with the likelihood of looser EU rules on combustion-engine car sales post-2035.
Carmakers including VW and BMW are weighing the addition of EVs with small range-extending combustion engines over time.
