Despite a stagnation in sales, the Tesla Model Y maintains its position as the top-selling electric vehicle in Europe during June 2025.
European Car Market Sees Decline in June 2025
The European car market experienced a significant decline in June 2025, with registrations falling by 4.4% year-on-year to about 1.25 million units. This decline was primarily due to high prices, ongoing geopolitical and economic tensions, and post-pandemic market adjustments.
Countries like Italy (-17%), Belgium (-16%), Germany (-14%), France (-7%), Switzerland (-6%), and Romania (-50%) were particularly affected. The overall registrations for the first half of 2025 also saw a slight 0.3% decrease compared to the same period in 2024.
Chinese Brands Gain Ground
Amidst this decline, Chinese brands made a significant ascent in the European market. They achieved a record market share in June 2025, surpassing 5% market share in the first half of the year. Chinese manufacturers notably outsold traditional global players such as Mercedes in June and Ford during the first half of 2025.
This rise coincides with a growing number of electric vehicle models introduced by Chinese brands, contributing to shifts in market dynamics. BYD, for instance, entered the top 25 in June 2025, selling more units than Suzuki, Mini, and Jeep. BYD also saw a 311% increase in sales in the first half of 2025, selling 70,500 units.
Tesla Faces Challenges
Traditional manufacturers like Tesla faced challenges in the European market. Tesla’s market share fell for the sixth consecutive month in June, dropping to 2.8% from 3.4% the previous year, with deliveries down nearly 23% year-on-year. Tesla’s decline has been attributed to increased competition from Chinese brands like BYD and established European groups such as Volkswagen, as well as challenges related to its aging vehicle models and reputational issues involving its CEO.
EV Sales Show Growth
Despite the overall market decline, electric vehicle sales overall show growth. Battery-electric vehicles were up 15% and plug-in hybrids were up 40% year-on-year in June, crossing the one-million-unit mark for BEVs in the first half of 2025. The electric vehicle share of the total market was 17.4% in the first half of 2025.
The overall electric vehicle market in Europe grew by 25% in the first half of 2025, with over 1,193,397 vehicles registered. Volkswagen, Tesla, BMW, Audi, and Skoda led the EV market in H1 2025. Ford's EV sales share rose from 4.5% in H1 2024 to 13.7% in H1 2025.
Notable Performers
The Tesla Model Y remained the leading EV brand in June, despite a 23% drop in sales. It was Europe’s best-selling electric vehicle in June and H1 2025. Renault Group dominated the overall model rankings in June, with the internal combustion engine Clio being the best-selling model in Europe with over 27,200 units. The BYD SUV Seal U was the most sold plug-in hybrid in Europe in June 2025, tied with the VW Tiguan.
Market Share Changes
Stellantis, a major corporation, lost market share, falling from 16.7% to 15.3% in the first half of 2025. This is the weakest first half for Stellantis since the merger of Fiat Chrysler and the PSA group in 2021. On the other hand, Denmark experienced the largest increase in electric market share (+19 percentage points).
In summary, the European car market faced a decline in June 2025, primarily due to high prices, geopolitical tensions, and post-pandemic market adjustments. However, the electric vehicle market showed growth, with Chinese brands making a significant ascent and traditional manufacturers like Tesla facing challenges.
- The rise of Chinese brands in the European market can be observed in the surge of electric-vehicles sales, with BYD entering the top 25 and seeing a 311% increase in sales, selling 70,500 units in the first half of 2025.
- Despite Tesla's decline in market share for the sixth consecutive month, the Tesla Model Y remained the leading electric vehicle in June and H1 2025, highlighting the growing importance of electric-lifestyle and technology in the European car market.
