Car registrations keep growing in CEE, except for Slovakia

CEE Macro and FI Daily , 30. Aug
Car registrations keep growing in CEE, except for Slovakia

Yesterday, the European Automobile Manufacturers' Association released data for July's car registrations. Slovenia recorded the highest annual growth at nearly 20%, followed by Poland at 18.6%. Czechia, Romania, and Croatia also showed solid expansion, while Slovakia experienced a significant decline of almost 15% y/y. Year-to-date, Slovakia's car registrations are slightly positive at 0.8%, whereas Poland, Romania, Croatia, and Hungary report double-digit growth. These four countries also exhibit the most robust household consumption growth this year. In terms of power units for registered cars in July, hybrid electric vehicles (HEVs, excluding plug-ins) dominate in Poland, Hungary, and Romania. Conversely, petrol cars lead in Slovakia and Czechia, followed by HEVs. Slovenia has only 15% of newly registered cars with some form of electric power, while Croatia has just 7%. Interestingly, Germany saw a substantial decline in battery-electric vehicle registrations, with a 36% y/y drop in July and a 20% decrease YTD. Such decline is counterbalanced by growing demand for HEVs and plug-in hybrids.