Europe car sales rebound

LONDON: European car sales returned to growth last month for the first time since December, with gains in the UK and robust demand for electric vehicles making up for weaker sales in Germany and France.

New-car registrations across the region rose 2.8% in March from a year earlier to 1.42 million units, the European Automobile Manufacturers' Association said Thursday.

The UK drove the increase with a 12% rise, while demand in Italy and Spain was also strong.

The robust sales offer some relief for Europe's car industry, which is grappling with weak consumer confidence, slumping Chinese sales and now US tariffs.

Automakers such as Stellantis NV and Renault SA are trying to stoke demand in Europe with cheaper electric models to help them compete with new Chinese entrants such as BYD Co.

EV deliveries surged 24% in the region last month as carmakers pushed sales of their battery-powered models by offering rebates.

It's unclear whether that growth will continue after the European Union decided in early March to give automakers more time to meet stricter CO2 emissions targets. Fully electric models accounted for 17% of all sales in the period.

The growth in EV sales didn't extend to Tesla Inc., which saw new registrations fall 28% in Europe last month.

Tesla has been consistently outsold in the bloc this year by China's SAIC Motor Corp., which owns the MG brand.

Some consumers are shunning Tesla over Chief Executive Officer Elon Musk's support for right-wing parties and his involvement in politics.

Additional tariffs from US President Donald Trump could further dent demand in a region that's already contending with weak economic growth.

Carmakers may struggle to grow sales at all in Europe this year after a small gain in 2024, with tariffs potentially shaking consumer confidence further, according to analysts at Bloomberg Intelligence.

Europe's biggest manufacturers are looking at ways to respond to the auto tariffs, even as Trump said he's exploring possible temporary exemptions on imported vehicles.

Stellantis has paused production in factories in Canada and Mexico, while Mercedes-Benz Group AG weighs withdrawing its least expensive cars from the US and moving production of another vehicle model to the country.

BMW AG is contemplating additional shifts at its South Carolina plant.

To compete with EVs from Chinese manufacturers like BYD or Xpeng Inc., European automakers are wooing customers with cheaper battery-powered models, such as Renault's €25,000 ($28,500) R5 E-tech and Stellantis' Citroën ë-C3 city car.