New car sales in the European Union surged by 13.7% in April, marking the largest increase since last October, the European Automobile Manufacturers Association (ACEA) reported. This rise follows a decline in March and was driven by higher registrations in Spain, Germany, France, and Italy, with an early Easter contributing two extra sales days.

Despite challenges such as slowing electric vehicle (EV) sales growth and rising Chinese competition, top European carmakers are optimistic about a rebound in sales this year. ACEA reported that battery electric car sales in April rose by 14.8% from the previous year, while hybrid-electric car sales increased by 33.1% year on year. Electrified vehicles, including fully electric models, plug-in hybrids, and full hybrids, made up 47.8% of all new passenger car registrations in April, up from 44.1% the previous year.

Volkswagen, Stellantis, and Renault saw EU car registrations grow by 15.5%, 1.7%, and 11%, respectively, with Toyota's registrations jumping by 47.3%. Overall, new vehicle registrations in the EU, Britain, and the European Free Trade Association (EFTA) rose by 12% to 1.08 million vehicles in April. However, major carmakers like Volkswagen, Mercedes-Benz, and Stellantis have faced higher costs and weaker demand due to high interest rates while ramping up new models, including affordable EVs.