New vehicle sales across Europe declined by over 5% in June, according to data released by the European Automobile Manufacturers’ Association (ACEA), underscoring deepening challenges for automakers navigating fierce Chinese competition, punishing US tariffs, and demanding regional regulations.
Sales within the European Union, United Kingdom, and European Free Trade Association fell 5.1% year-on-year to 1.24 million units, with significant downturns observed in major markets including Germany (-13.8%), France (-6.7%), and Italy (-17.4%). The UK (+6.7%) and Spain (+15.2%) provided rare bright spots in an otherwise bleak landscape.
The continent’s dominant automotive groups faced substantial headwinds. Volkswagen registrations dropped 6.1%, Stellantis declined 12.3%, Renault fell 0.6%, and Hyundai receded 8.7% compared to June 2024. Tesla’s challenges intensified, with sales plummeting 22.9% and market share contracting to 2.8% from 3.4% a year earlier.
Conversely, brands outside ACEA’s traditional reporting framework, predominantly Chinese manufacturers like BYD, saw their collective market share more than double to 4.5%, signalling a notable shift in competitive dynamics.
European automakers also confront multi-billion-euro losses and profit warnings amidst a rapidly evolving regulatory environment aimed at accelerating the electric transition. Paradoxically, whilst overall EU car sales fell 7.3%, electrified vehicles demonstrated robust growth: battery electric vehicle (BEV) registrations rose 7.8%, hybrid electric vehicles (HEV) surged 41.6%, and plug-in hybrids (PHEV) increased 6.1%.
Collectively, these categories represented 59.8% of all new EU passenger car registrations, up significantly from 50% a year earlier.
