April brought a small but telling decline in European new-car sales, highlighting how economic weakness and global uncertainty are dampening consumer appetite. While the overall market slipped, underlying shifts in technology and brand fortunes continued to reshape the region’s automotive landscape.
Sales Decline Hits Legacy Automakers and Traditional Models
According to the ACEA, new-car registrations across Europe fell 0.3 percent to 1.08 million units in April. Major markets—including Germany, France, and the U.K.—all reported falling numbers. Soft demand at home comes as European carmakers face tough export conditions, with U.S. tariffs and fierce competition in China compounding their challenges.
Gasoline and diesel vehicles posted the steepest drops, outpacing gains seen in electric and hybrid models. Volkswagen, Volvo, and Mercedes-Benz Group are already cutting costs in response to the tougher market.
EV and Hybrid Growth: Winners and Losers
Fully electric vehicle (BEV) sales surged 28 percent compared to a year earlier. However, they still represent only 17 percent of the market—well below earlier forecasts that projected over 30 percent by 2025.
Tesla’s troubles are stark: Its European sales were nearly halved in April to 7,261 units. Market share continues to erode, with analysts pointing to CEO Elon Musk’s polarizing politics and ties to Donald Trump as contributing factors. China’s BYD outpaced Tesla in European EV sales for the first time, according to JATO Dynamics.
“The share of battery-electric vehicles is slowly gaining momentum, but growth remains incremental and uneven across EU countries,” said Sigrid de Vries, ACEA’s director general.
Plug-in hybrid sales jumped 31 percent, with nearly 100,000 new registrations in April. Delayed implementation of stricter emissions rules by both the EU and UK has eased the pressure on carmakers to accelerate full EV adoption, at least temporarily.
Chinese Brands Make Big Gains, Stellantis Loses Ground
While some European brands falter, Chinese manufacturers are gaining traction. MG owner SAIC’s European sales soared 25 percent in April, with registrations for the year up 31 percent to 100,011 units—mostly MG models like the ZS, as well as some Maxus vans. BYD also reported significant progress.
Meanwhile, Stellantis continues to lose market share in the region and is still searching for a new CEO.
Outlook: Volatility Persists Amid Changing Tastes
Despite incremental growth in electrified models, the European market remains volatile. Demand for BEVs and plug-in hybrids is rising, but not fast enough to offset declines in traditional combustion models. With tariffs, cost pressures, and global uncertainty still in play, automakers are bracing for more turbulence as consumer preferences evolve and new competitors enter the field.
