The European car market as a whole has been in decline for six consecutive months as of March 2019 with 19 out of 27 markets posting declines. March numbers were down 3.6 percent over the same month in 2018. Looking at the first quarter of 2019 paints an even bleaker picture with only 6 countries recording growth.
While overall demand is down, the demand for electric vehicles grows. The sales of EVs exceeded 100,000 units for the first time ever with a total of 125,400 EV and PHEVs sold. That is an increase of 31%, mostly in Germany, Norway, Spain, and the Netherlands. Much of that growth is attributed to the Tesla Model 3 entering the market and becoming Europe's top selling electric car. Model 3 sales jumped from 3,747 units in February to 15,755 units in March. It was also the best selling premium mid-size car in the EU.
Diesel on the other hand is facing continuing losses. Registrations of new diesels have moved from 44.8 percent of all registrations in March 2017 to 31.2 percent of all registrations in March 2019. Analysts expect diesel to continue to fade as more cities put in diesel bans and stricter emissions regulations come into effect.