Renault has snatched the title of Europe’s second-largest carmaker from Stellantis, as revealed by a January 21 report from the European Automobile Manufacturers’ Association (ACEA). In December, Renault Group—maker of Renault, Dacia, and Alpine—sold over 120,000 cars, outpacing Stellantis, which managed just above 111,000.
Stellantis, home to brands like Jeep, Fiat, and Peugeot, faced a sharp 7.2% drop in market share compared to the previous year. Renault, on the other hand, increased its share by nearly 2%. This marks the first time since Stellantis’ creation in 2021 that it has been overtaken by Renault in monthly sales.
Despite this upset, Stellantis remained ahead for the full year, selling 1,742,073 cars in 2024 compared to Renault’s 1,733,762. Meanwhile, Volkswagen continued its reign as Europe’s top carmaker, with December sales climbing 5.9% to nearly 240,000 vehicles.
Europe’s car market held steady overall, growing by a modest 0.8% in 2024. Among the biggest winners were Mitsubishi (+43.7%), Volvo (+28%), and Honda (+21%). Conversely, Ford (-13.7%) and Tesla (-13.1%) saw significant losses. Germany’s Smart (-54.3%) and the UK’s Jaguar (-45%) were the worst performers, with Jaguar’s lackluster year partly blamed on a divisive advertising campaign.
Economic challenges hit Stellantis hard. The automaker grappled with pricing and quality issues, and its CEO, Carlos Tavares, abruptly resigned following profit warnings. The company’s corporate value plummeted by over 40% in 2024.
Renault, however, thrived, buoyed by the success of its new electric Renault 5, which earned praise from industry experts. Despite shrinking electric vehicle (EV) subsidies across Europe, Renault’s stock price surged by nearly 41% last year.
Even with Renault’s electric vehicle success, EV sales took a hit in 2024. Registrations of battery-electric cars dropped 10.2% in December, driven by steep declines in Germany (-38.6%) and France (-20.7%). Overall, EV sales fell by 5.9% year-over-year, according to ACEA.
Battery-electric vehicles still captured a 13.6% market share in 2024, ranking as the third-most-popular choice for European buyers. Yet the phase-out of subsidies in major markets signaled rough waters ahead for the sector.
While Stellantis grapples with internal struggles and a declining market presence, Renault’s adaptability and innovation have positioned it as a strong competitor. Whether this shake-up signals a permanent shift or a temporary bump in the road remains to be seen. One thing’s certain: the competition in Europe’s car market is only heating up.
