Commercial and private sales are even in Europe
It is well known that a large portion of car sales in developed economies is to businesses, rentals and fleets in general. The business world shares the market with individuals who go to dealerships to purchase a new vehicle. in Europe, businesses account for more than half of sales.
In fact, businesses, dealerships, rentals and fleets in general accounted for 54% of total registrations during the first quarter of 2022, according to information provided by JATO Dynamics. The data, from 17 European countries, indicates that the percentage has fallen compared to 2020 mainly due to the boom in pure electric cars. Are electric cars having such a big impact in the region?
Ownership of an electric vehicle is half commercial, half private:
JATO analysis reveals that just over half (50.2%) of battery electric vehicle (BEV) registrations in the first quarter of this year were for businesses. This is less than the total average for the continent, equal to 54%. Moreover, the percentage is lower than that of the business sector when it comes to the demand for internal combustion engine, fuel cell, mild hybrid and plug-in hybrid cars.
In other words, the electric car boom in Europe has a strong component of private owners. This is very good for the industry, as consumer retail margins are generally higher than business margins. Also, consumers are really responding to the incentives offered by the governments in the region.
It’s also a good thing as long as demand isn’t driven by artificial sales like the practice of self-registrations, where many brands sell their cars to dealerships to post better sales results in the end. of each month. The more private registrations, the better for brand profitability and a better understanding of market trends.
The plug-in hybrid is the opposite
Contrary to the good mix of electric car sales in Europe, plug-in hybrids and PHEVs posted a strong share of business registrations through March 2022. According to the data, 69% of registered registrations in the first quarter were made from companies and fleets, leaving only 31% to individuals.
These cars have become a good alternative for many companies across Europe, due to their low fuel consumption and certain tax advantages depending on the country.
The strange affair of the Dacia spring
Although the Tesla Model 3 is the most popular electric car for individuals and businesses, it is the Dacia Spring that has the largest share of normal customers in terms of overall sales.
Indeed, registrations to individuals represented 83% of its volume in the first quarter, as did its big sisters (Sandero and Duster) among thermal engine cars. Their registrations with individuals accounted for 88% and 84% respectively, making them the best-selling cars among consumers.
The author of the article, Felipe Munoz, is an automotive industry specialist JATO Dynamics