Passenger Cars: What They Are And Why They Are So Important - ACEA

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Passenger cars: what they are and why they are so important 10 February 2025

For over a hundred years, the private car has transformed modern society by providing independence and freedom of mobility. Cars are our number one source of mobility, taking the average European more than 12,000 kilometres a year.

What are passenger cars?

  • The European classification system defines passenger cars as “vehicles designed and constructed for the carriage of passengers and comprising no more than eight seats in addition to the driver’s seat, and having a maximum mass not exceeding 3.5 tonnes”.
    • They are classified as the ‘M1’ category.
  • There are many different kinds of cars including sports, luxury, family-oriented, small cars and sports utility vehicles (SUVs).

Why are cars so important?

  • For over a hundred years, the private car has transformed modern society by providing independence and freedom of mobility.
  • Mobility is becoming more and more important due to ever-increasing distances between home, work, educational institutions, shopping, and leisure facilities.
  • Cars are our number one source of mobility, taking the average European more than 12,000 kilometres a year.
  • Over 82% of inland journeys are made by car – be it private car, taxi, or carsharing.
  • Without individual mobility, adequate participation in social and economic life would not be possible in many cases, particularly for people living in remote areas, the elderly, and those with disabilities.
  • People living in urban areas may rely on taxis, carsharing, or on-demand services instead of, or as a complement to, their own private car.
  • Passenger car travel enables home care and medical assistance, as well as a range of other emergency services.
  • Job-related mobility is of particular importance, with about a half of all vehicle kilometres travelled in the EU being related to employment.
  • The budgets of the EU member states receive €380 billion per year from the sale and use of passenger cars.
Cars are our number one source of mobility, taking the average European more than 12,000 kilometres a year. Over 82% of inland journeys are made by car – be it private car, taxi, or carsharing.

In figures

  • 249 million – There are 249 million passenger cars on the EU’s roads today.
  • 12.5 years – The average age of cars in the EU is 12.5 years now.
  • 24 new cars were registered per 1,000 inhabitants in the EU in 2023.
  • 10.6 million – In 2024, 10.6 million passenger cars were sold in the EU, an increase of 0.8% compared to the previous year.
  • 98 – There are 98 car assembly plants in Europe.
  • 12.2 million passenger cars were made in the European Union in 2023.
  • 4,553,344 European cars were exported worldwide in 2024, worth nearly €155 billion.
  • 20% of all cars produced around the world are built in Europe.
  • 45.2% – Conventional fuel types still dominated EU car sales, accounting for 45.2% of all new registrations in 2024.
  • 20.8% – Electrically-powered vehicles (battery electric and plug-in hybrid) together represent 20.8% of new car sales in the EU, but only 3.9% of all passenger cars on the road today.
  • -14.7% – In 2023, average new car emissions were 107.8g CO2/km, a 14.7% decrease since 2013.
4,553,344 European cars were exported worldwide in 2024, worth nearly €155 billion.
Content type Fact Tags/topics GREEN & CLEANPowertrain optionsAlternatively-powered vehiclesElectric vehiclesElectrically-chargeable vehiclesBattery electric vehiclesPlug-in hybrid electric vehiclesFuel cell electric vehiclesHybrid electric vehiclesRenewable fuelsSMART & EFFICIENTMobility solutionsTransport policyMultimodal transportGLOBAL & COMPETITIVEConsumer demandVehicle fleetInternational tradeMarket and economyProduction of vehiclesRegistrations of vehiclesTaxation Vehicle types All vehiclesPassenger cars

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