European car sales took a sharp fall in June. According to new data from the European Automobile Manufacturers Association (ACEA), sales across the EU, UK, and EFTA dropped by 5.1% compared to June last year. That’s around 1.24 million new cars—a steep drop that shows how badly the auto industry is struggling.
And here’s the twist: while most traditional car companies are losing ground, Chinese automakers are gaining fast.
Big Brands Are Slipping
The four biggest carmakers in Europe—Volkswagen, Stellantis, Renault, and Hyundai—all sold fewer cars this June compared to last year.
- Volkswagen sales dropped by 6.1%
- Renault fell 12.3%
- Hyundai was down 8.7%
- Stellantis held up slightly better, falling just 0.6%
Even Tesla, once the symbol of EV dominance, saw a massive 22.9% fall in European sales. Its market share shrank from 3.4% to just 2.8%. That’s its sixth straight month of decline.
But EV Sales Are Still Rising
Despite this slump, electric and hybrid vehicles are growing. In the EU alone, battery electric vehicles (BEVs) rose 7.8%, hybrids jumped 41.6%, and plug-in hybrids went up by 6.1%.
Together, these cleaner cars made up almost 60% of all new car registrations in June, up from 50% a year earlier. So yes, people still want greener options—but they want better choices too.
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China Steps In
While old names struggle, new brands—especially from China—are filling the gap.
Chinese automakers like BYD more than doubled their market share to 4.5%. They’re offering affordable, fully electric models. In a market full of delays, high prices, and confusing rules, they look like the better deal.
Ben Nelmes from EV research group New AutoMotive put it straight: “Drivers want cleaner, cheaper cars. And new brands are ready to give them that.”
Country Breakdown
- Germany: down 13.8%
- France: down 6.7%
- Italy: down 17.4%
- Spain: up 15.2%
- UK: up 6.7%
Southern Europe seems to be doing better, but the major economies are clearly in trouble.
The Bigger Problem
Europe’s carmakers aren’t just facing sales issues. They’re dealing with:
- Tough new EV rules at home
- Tariffs of 25% on U.S. exports
- Rising competition from faster, cheaper Chinese brands
Billions in losses and profit warnings have already hit some companies. And if they don’t change fast, they might fall even harder.
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