Published by Global Banking & Finance Review®
Posted on July 24, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GoogleEuropean car sales dropped over 5% in June due to global challenges. Major brands saw declines, while electric vehicle registrations rose.
(Reuters) -New car sales in Europe fell more than 5% in June, the European Automobile Manufacturers Association (ACEA) said on Thursday, in a reflection of the global challenges faced by automakers.
Tesla lost market share for a sixth consecutive month despite a rise in overall sales of electric cars, while the four best-selling groups in Europe, Volkswagen, Stellantis, Renault and Hyundai, all sold fewer cars than in June 2024.
WHY IT'S IMPORTANT
European auto makers have booked multi-billion losses and issued profit warnings as they struggle to handle competition from China, U.S. import tariffs of 25%, and domestic regulations aimed at speeding up the EV transition.
BY THE NUMBERS
Sales in the European Union, Britain and the European Free Trade Association fell 5.1% in June from a year earlier, to 1.24 million cars, ACEA data showed.
Registrations at Volkswagen, Renault, Stellantis and Hyundai dropped 6.1%, 12.3%, 0.6% and 8.7%, respectively.
Tesla's sales were down 22.9%, and its market share contracted to 2.8% from 3.4% a year ago.
The share of brands not accounted for by the ACEA, including BYD and other Chinese carmakers, more than doubled to 4.5%.
In the EU, total car sales fell 7.3% year-on-year, even as registrations of battery electric (BEV), hybrid electric (HEV) and plug-in hybrid (PHEV) cars rose 7.8%, 41.6% and 6.1%, respectively.
The three types of electrified vehicles accounted for 59.8% of EU passenger car registrations in June, up from 50% a year earlier.
Overall sales in Germany, France and Italy fell 13.8%, 6.7% and 17.4%, respectively, while they rose 6.7% in Britain and 15.2% in Spain.
QUOTE
"While drivers clamour for cleaner, cheaper cars, dynamic new brands are stepping up to fill the gap left by some incumbents who have been too slow to give the customers what they want," said Ben Nelmes, founder of EV data analysis firm New AutoMotive.
(Reporting by Alessandro Parodi; Editing by Kirsten Donovan)
New car sales in Europe fell more than 5% in June, according to the European Automobile Manufacturers Association (ACEA).
Tesla lost market share for a sixth consecutive month, with its market share contracting to 2.8% from 3.4% a year ago.
Registrations of battery electric vehicles (BEV), hybrid electric vehicles (HEV), and plug-in hybrids (PHEV) rose by 7.8%, 41.6%, and 6.1%, respectively.
Overall sales in Germany, France, and Italy fell by 13.8%, 6.7%, and 17.4%, respectively, while they increased by 6.7% in Britain and 15.2% in Spain.
European automakers are struggling with competition from China, U.S. import tariffs of 25%, and domestic regulations aimed at speeding up the transition to electric vehicles.
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