New car sales in Europe dropped by 5.1 per cent in June, marking the steepest monthly decline in ten months, according to the European Automobile Manufacturers Association (ACEA). A total of 1.24 million new cars were registered across the European Union, the UK, and the European Free Trade Association, reflecting deepening challenges for traditional automakers. The region’s top four auto groups—Volkswagen, Stellantis, Renault, and Hyundai—posted lower year-on-year sales, down 6.1 per cent, 12.3 per cent, 0.6 per cent, and 8.7 per cent, respectively.&nbsp;Germany, the continent’s largest auto market, led the downturn with a 13.8 per cent fall in registrations, followed by Italy (17.4 per cent) and France (6.7 per cent). Only Britain and Spain posted gains, up 6.7 per cent and 15.2 per cent, respectively. Despite growth in electric vehicle (EV) segments—battery electric (up 7.8 per cent), hybrid electric (up 41.6 per cent), and plug-in hybrids (up 6.1 per cent)—the overall EV demand is slowing. The three combined vehicle types accounted for nearly 60 per cent of EU registrations in June, up from 50 per cent a year earlier, but sales are growing at the slowest pace this year. Industry groups are urging EU policymakers to provide fresh incentives for EV adoption to prevent further weakening.Adding to the pressure, automakers are contending with stiff competition from Chinese brands and mounting global trade tensions. Chinese companies such as BYD, Xpeng, and Leapmotor are gaining market share rapidly, with the share of non-ACEA brands, largely Chinese, more than doubling to 4.5 per cent in June. JATO Dynamics estimates Chinese brands now account for a record 5.1 per cent of Europe’s car market. The European Commission has granted a three-year reprieve on tighter carbon targets, but concerns remain over manufacturers' competitiveness, especially as US tariffs on imported vehicles continue to threaten profits.<h2>Tesla’s struggles mount as market share shrinks</h2>Tesla’s performance in Europe continued its downward trajectory in June, with the US electric vehicle maker posting a 22.9 per cent year-on-year drop in new car registrations, falling to 34,781 units. Its market share contracted to 2.8 per cent, down from 3.4 per cent a year earlier, marking the sixth consecutive monthly decline.Despite the broader growth in EV sales, Tesla is losing ground to both traditional rivals and emerging Chinese competitors. Analysts point to slowing sales of its key Model Y and rising competition from brands like BYD and Volkswagen, which have rolled out new models in Tesla’s core segments.The company is also contending with reputational challenges, attributed in part to CEO Elon Musk’s polarising political stance and alignment with US policies under the Trump administration a few months ago. These factors, combined with the expiration of US EV tax credits and higher tariff costs, are compounding its difficulties. Analysts suggest that Tesla could become a more niche player in Europe’s increasingly crowded EV market unless it leverages breakthrough technology or new product strategies to reclaim its early-mover advantage.<h2>EV incentives and hybrid growth offer some relief</h2>While fully electric vehicles posted a 14 per cent gain in June, growth remains uneven across the region. The reintroduction of EV grants in the UK, offering up to £3,750 ($5,077) for buyers, helped lift the country’s new car sales. Meanwhile, plug-in hybrid vehicles were a bright spot, with registrations surging by 38 per cent, reflecting growing consumer preference for dual-mode powertrains amid concerns over charging infrastructure.Still, Europe’s auto industry faces a challenging second half of 2025, with sluggish demand, tariff headwinds, and intensifying global competition forcing manufacturers to rethink strategies, accelerate innovation, and push for more robust policy support.&nbsp;(With inputs from agencies)

Tesla’s performance in Europe continued its downward trajectory in June, with the US electric vehicle maker posting a 22.9 per cent year-on-year drop in new car registrations, falling to 34,781 units. 

New car sales in Europe dropped by 5.1 per cent in June, marking the steepest monthly decline in ten months, according to the European Automobile Manufacturers Association (ACEA). A total of 1.24 million new cars were registered across the European Union, the UK, and the European Free Trade Association, reflecting deepening challenges for traditional automakers. The region’s top four auto groups—Volkswagen, Stellantis, Renault, and Hyundai—posted lower year-on-year sales, down 6.1 per cent, 12.3 per cent, 0.6 per cent, and 8.7 per cent, respectively. Germany, the continent’s largest auto market, led the downturn with a 13.8 per cent fall in registrations, followed by Italy (17.4 per cent) and France (6.7 per cent). Only Britain and Spain posted gains, up 6.7 per cent and 15.2 per cent, respectively. Despite growth in electric vehicle (EV) segments—battery electric (up 7.8 per cent), hybrid electric (up 41.6 per cent), and plug-in hybrids (up 6.1 per cent)—the overall EV demand is slowing. The three combined vehicle types accounted for nearly 60 per cent of EU registrations in June, up from 50 per cent a year earlier, but sales are growing at the slowest pace this year. Industry groups are urging EU policymakers to provide fresh incentives for EV adoption to prevent further weakening. Adding to the pressure, automakers are contending with stiff competition from Chinese brands and mounting global trade tensions. Chinese companies such as BYD, Xpeng, and Leapmotor are gaining market share rapidly, with the share of non-ACEA brands, largely Chinese, more than doubling to 4.5 per cent in June. JATO Dynamics estimates Chinese brands now account for a record 5.1 per cent of Europe’s car market. The European Commission has granted a three-year reprieve on tighter carbon targets, but concerns remain over manufacturers' competitiveness, especially as US tariffs on imported vehicles continue to threaten profits. Tesla’s struggles mount as market share shrinks Tesla’s performance in Europe continued its downward trajectory in June, with the US electric vehicle maker posting a 22.9 per cent year-on-year drop in new car registrations, falling to 34,781 units. Its market share contracted to 2.8 per cent, down from 3.4 per cent a year earlier, marking the sixth consecutive monthly decline. Despite the broader growth in EV sales, Tesla is losing ground to both traditional rivals and emerging Chinese competitors. Analysts point to slowing sales of its key Model Y and rising competition from brands like BYD and Volkswagen, which have rolled out new models in Tesla’s core segments. The company is also contending with reputational challenges, attributed in part to CEO Elon Musk’s polarising political stance and alignment with US policies under the Trump administration a few months ago. These factors, combined with the expiration of US EV tax credits and higher tariff costs, are compounding its difficulties. Analysts suggest that Tesla could become a more niche player in Europe’s increasingly crowded EV market unless it leverages breakthrough technology or new product strategies to reclaim its early-mover advantage. EV incentives and hybrid growth offer some relief While fully electric vehicles posted a 14 per cent gain in June, growth remains uneven across the region. The reintroduction of EV grants in the UK, offering up to £3,750 ($5,077) for buyers, helped lift the country’s new car sales. Meanwhile, plug-in hybrid vehicles were a bright spot, with registrations surging by 38 per cent, reflecting growing consumer preference for dual-mode powertrains amid concerns over charging infrastructure. Still, Europe’s auto industry faces a challenging second half of 2025, with sluggish demand, tariff headwinds, and intensifying global competition forcing manufacturers to rethink strategies, accelerate innovation, and push for more robust policy support. (With inputs from agencies)

Tesla’s performance in Europe continued its downward trajectory in June, with the US electric vehicle maker posting a 22.9 per cent year-on-year drop in new car registrations, falling to 34,781 units.&nbsp;

European car sales slump sharply in June amid industry headwinds

Just over 1.06 million new passenger cars were registered in Europe in June of this year—the lowest since 1996—with several automakers reporting sales declines of nearly 50%, according to data from the European Automobile Association.With almost a quarter fewer sales than last June, Volkswagen was the major automaker most negatively impacted.However, Stellantis has experienced the greatest drop thus far, falling 21.1 percent in the first half of the year.

Jaguar Land Group saw a less severe decline in June, down 13.2%, but the worst hit this year, down 34.7 percent.Volvo's new registrations plunged 47.9 percent in June and 28.5 percent for the first half of the year.

A few of the issues affecting the region's auto industry, which has now recorded 12 straight months of decreases, include inflation, supply chain bottlenecks, an increase in coronavirus infections in several nations, and a continuing chip shortage. Prior to the release of their second quarter results later this month, major automakers, including Stellantis and BMW, have recently announced declining sales globally. Spain, Italy, Germany, and France—the four biggest markets in the European Union—all reported declining car registrations.

Due to an easy year-ago comparison, sales in important areas like Germany and the UK may start to increase again this month. While that means there may be a chance for the industry to end a 12-month run of declines, it will be challenging to make up for output losses in the first half. LMC Automotive now predicts that Western European passenger car deliveries will fall 6.3 percent this year to 9.92 million.

Demand forecasting is still challenging because of the possibility of worsening energy shortages. This week, the primary pipeline carrying Russian gas to Europe was taken offline for maintenance, and Berlin and its allies are preparing for Putin to permanently halt supplies as revenge for the sanctions and backing given to Ukraine.

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Just over 1.06 million new passenger cars were registered in Europe in June of this year—the lowest since 1996—with several automakers reporting sales declines of nearly 50%, according to data from the European Automobile Association.

Just over 1.06 million new passenger cars were registered in Europe in June of this year—the lowest since 1996—with several automakers reporting sales declines of nearly 50%, according to data from the European Automobile Association.With almost a quarter fewer sales than last June, Volkswagen was the major automaker most negatively impacted.However, Stellantis has experienced the greatest drop thus far, falling 21.1 percent in the first half of the year. Jaguar Land Group saw a less severe decline in June, down 13.2%, but the worst hit this year, down 34.7 percent.Volvo's new registrations plunged 47.9 percent in June and 28.5 percent for the first half of the year. A few of the issues affecting the region's auto industry, which has now recorded 12 straight months of decreases, include inflation, supply chain bottlenecks, an increase in coronavirus infections in several nations, and a continuing chip shortage. Prior to the release of their second quarter results later this month, major automakers, including Stellantis and BMW, have recently announced declining sales globally. Spain, Italy, Germany, and France—the four biggest markets in the European Union—all reported declining car registrations. Due to an easy year-ago comparison, sales in important areas like Germany and the UK may start to increase again this month. While that means there may be a chance for the industry to end a 12-month run of declines, it will be challenging to make up for output losses in the first half. LMC Automotive now predicts that Western European passenger car deliveries will fall 6.3 percent this year to 9.92 million. Demand forecasting is still challenging because of the possibility of worsening energy shortages. This week, the primary pipeline carrying Russian gas to Europe was taken offline for maintenance, and Berlin and its allies are preparing for Putin to permanently halt supplies as revenge for the sanctions and backing given to Ukraine. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Lowest European car sales since 1996 due to supply issues following a 12-month decline

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European car sales slump sharply in June amid industry headwinds

Lowest European car sales since 1996 due to supply issues following a 12-month decline