2016 see's European growth of 6.5% to 15.14 million sales, of whch 25% are SUV/Crossover models.

• European car registration volume at second-highest point since 2007
• The market was boosted by the launch of additional SUVs and higher demand for premium brands
• Volkswagen Golf maintained its position as Europe’s most popular car model

The European car industry boomed in 2016 - with new car registrations for the year totalling 15.14 million units, a 6.5% increase when compared to 2015. 

This is the second highest volume seen since 2007 when total registrations exceeded 16 million units, demonstrating that the market is proving resilient in the face of the geopolitical events of 2016 which have rocked consumer confidence.

The results show that the continuing SUV boom was the overwhelming trend of the year, with registrations growing by 21.4% - increasing from 3.2 million units registered in 2015 to 3.9 million last year. In contrast, the traditional segments grew by just 2.2%.

In fact, European consumer preferences shifted further towards SUVs, and away from hatchbacks, sedans, station wagons and MPVs. SUVs accounted for more than a quarter of total registrations at 25.6%, an increase in market share of 3.1 percentage points when compared to 2015. 

In contrast, MPVs lost 0.9 percentage points, with its market share falling to 9.5%, whilst subcompacts lost 0.8 percentage points and accounted for 21.2% of the market.

In a show of resilience, Volkswagen Group maintained its lead of the market, and despite 2016 being one of its most challenging years ever - the German car maker still managed to increase its registrations by 3.3%. 

The overall market grew by 6.5%, meaning that Volkswagen Group’s market share fell from 24.8% in 2015 to 24.0% last year. This was the highest market share decrease of all car groups. 

In contrast, FCA, Daimler, Renault-Nissan and Tata Group all increased their market share, thanks to their wider SUV ranges and the increase in sales seen in Southern European markets. 

As other manufacturers gain ground, Volkswagen Group will need to work hard to maintain its position as Europe’s leading manufacturer.

EUROPE-29 FULL-YEAR 2016 VOLUME BY COUNTRIES

“2016 was a great year for the industry, with the second highest volume of registrations since 2007. European car registrations have shown good momentum, with 27 out of 29 markets in Europe recording positive growth last year, and 14 of those markets posting double-digit increases. 

I believe car makers are now better prepared to face the challenging times ahead,” said Felipe Munoz, JATO’s Global Automotive Analyst.

TOP SELLING BRANDS

Regarding the performance of brands in 2016, Munoz said “The challenges seen by VW benefitted mainstream brands such as Renault and Fiat.

The premium brands also performed very well, increasing their market share by almost 1 percentage point from 23.0% in 2015 to 23.8% last year.”

TOP SELLING MODELS

The Golf maintained its lead but lost ground in the model ranking. The Opel/Vauxhall Astra, Renault Captur, Fiat Panda, VW Tiguan and Peugeot 2008 also performed well. The highest market share gains were posted by the Hyundai Tucson, Renault Kadjar and Fiat Tipo.

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