JATO Dynamics<\/a>, a UK-based provider of automotive data, analysis, and intelligence. \u201cPersistently high prices, economic uncertainty, and the long tail of the pandemic are weighing on consumer confidence.\u201d He noted that the region has lost over 2.5 million units in annual sales since 2019.<\/p>\nSo far this year, 6.84 million new cars have been registered across the region \u2014 17,728 fewer than in the same period last year, marking a 0.3% year-on-year decline.<\/p>\n
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Chinese brands surge<\/p>\n
As Europe\u2019s overall market contracts, Chinese automakers are gaining ground rapidly. In the first half of 2025, their market share nearly doubled to 5.1% \u2014 just shy of Mercedes-Benz (5.2%) and ahead of Ford (3.8%). In June alone, Chinese brands outsold Mercedes.<\/p>\n
Driving this growth are five key players: BYD, Jaecoo, Omoda, Leapmotor, and Xpeng. BYD\u2019s aggressive pricing helped it register over 70,500 units in H1 \u2014 up 311% year-on-year \u2014 with 15,565 units in June alone. Its Seal U plug-in hybrid tied with the Volkswagen Tiguan as the best-selling PHEV last month.<\/p>\n
Leapmotor, boosted by strong sales of the T03 and C10, registered more than 8,300 units in June. Meanwhile, Xpeng emerged as the leading high-end Chinese brand, with 8,338 units sold in H1 \u2014 most of them G6 SUVs.<\/p>\n
Legacy brands struggle<\/p>\n
Major players are feeling the heat. Stellantis saw its market share fall to 15.3% in H1, its lowest since the group\u2019s creation in 2021. Registrations dropped by 8.6% in the first half, and 11.7% in June. \u201cStellantis is suffering from a lack of new models and a heavy reliance on more expensive BEVs,\u201d Munoz said.<\/p>\n
Tesla also saw market share shrink, falling from 2.4% in H1 2024 to 1.6% this year \u2014 overtaken by SAIC-owned MG. The updated Model Y has yet to deliver a significant sales boost, with registrations up just 0.1% year-on-year in June.<\/p>\n
BEVs break one-million barrier<\/p>\n
Despite headwinds, battery-electric vehicle (BEV) registrations passed the one-million mark for the first time in H1 \u2014 totalling 1.19 million units, up 25% year-on-year. June\u2019s BEV growth, however, slowed to 15%.<\/p>\n
BEVs now account for 17.4% of the new car market, led by Norway, Denmark, and the Netherlands. Ford and Volkswagen Group posted strong increases in BEV share, while BYD and SAIC shifted toward other powertrains amid tariff concerns.<\/p>\n
Renault dominates model rankings<\/p>\n
The Renault Clio topped the sales charts in June with over 27,200 registrations, ahead of the Tesla Model Y. For H1, the Dacia Sandero \u2014 also part of Renault Group \u2014 took the top spot overall.<\/p>\n
Among the fastest-growing models were the MG3 (+258%), Fiat\/Abarth 600 (+400%), and Audi A5 (+149%). New entrants like the Renault Symbioz and Jaecoo 7 also made strong debuts, registering 41,730 and 37,700 units respectively.<\/p>\n
Europe\u2019s auto market remains under pressure as macroeconomic conditions weigh on consumer demand. Yet, in this uncertain environment, the rise of Chinese brands and the continued growth of BEVs highlight a market in rapid transition. As Munoz put it, \u201cThe post-pandemic market reality is taking shape \u2014 and it\u2019s a very different landscape from what we knew just a few years ago.\u201d<\/p>\n
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