The European new-car market is experiencing some fluctuations as we reach the halfway point of 2025. While there were hopes of a return to growth, the latest data from ACEA shows a decline in total deliveries across the 27 member states. In June, registrations fell by 7.3%, with over 1.01 million units reaching customers. This setback means that the market ended the first half of the year further from improvement, with a total of 5.58 million units, which is a deficit compared to the same period in 2024.
One positive note is the increase in electric vehicle (EV) registrations in the EU. Battery-electric vehicles (BEVs) made up 16.7% of new-car volumes in June, while plug-in hybrid electric vehicles (PHEVs) saw a healthy year-on-year increase, capturing a 9.3% market share. However, hybrid growth experienced its smallest year-on-year increase of 2025 at 6.1%, giving the technology a 33.8% market hold. The decline in registrations of internal-combustion engine (ICE) models, particularly petrol and diesel, is hindering the overall market growth.
On a global scale, the EV market saw growth in May, with BEVs and PHEVs both showing improvement compared to the previous year. China remained the leader in the BEV market, followed by the US and Germany. The Tesla Model Y and BYD Song Plus were among the top-performing models in the BEV and PHEV markets, respectively.
In terms of trade deals, the EU and US are nearing an agreement that would impose tariffs on European imports, potentially avoiding higher rates threatened by US president Donald Trump. This news follows a trade deal between Trump and Japan, which lowered tariffs on automotive imports from Japan into the US. Additionally, there are discussions in the EU about potentially banning car rental firms from purchasing new petrol and diesel models from 2030 to accelerate the uptake of EVs.
Overall, the automotive industry is facing challenges and opportunities as it navigates market fluctuations, technological advancements, and trade negotiations. Stay tuned for more updates on the latest developments in the automotive sector.
