The European new car market experienced a contraction in June 2025, with sales falling by 4.4% compared to the same period last year, reaching 1,250,868 units. This decline contributed to a 0.3% drop in total sales for the first half of the year, with 6,844,426 vehicles sold. According to JATO Dynamics data from 28 European markets, the most significant decreases in June were observed in Italy (17%), Belgium (16%), and Germany (14%).
Chinese Brands Gain Significant Traction
Despite the overall market downturn, Chinese automobile manufacturers are making remarkable progress. Their market share nearly doubled in the first half of 2025, reaching a record 5.1%, with a 91% increase in sales volume year-on-year. This growth comes at the expense of European, Japanese, Korean, and American manufacturers.
Leading this surge are five prominent brands: BYD, Jaecoo, Omoda, Leapmotor, and Xpeng. BYD recorded a 311% year-on-year sales increase in the first half of 2025, selling 70,500 units. In June alone, BYD sold 15,565 vehicles, surpassing brands like Suzuki, Mini, and Jeep to enter the top 25 best-selling brands. The BYD Seal U was notably the best-selling PHEV model in Europe in June, alongside the Volkswagen Tiguan.
Chery Group’s Jaecoo and Omoda also showed significant advancements, primarily driven by internal combustion engine (ICE) models. As of June, 63% of their sales were ICE vehicles, while 29% were plug-in hybrid SUVs. The Jaecoo 7 was the 9th best-selling PHEV model in Europe in June.
Major Brands Face Declines
As Chinese brands expand, established industry giants are losing market share. In the first six months of 2025, Stellantis Group experienced the largest decline, with its market share dropping from 16.7% to 15.3%. The group recorded its lowest sales volume in Europe since its formation in 2021. Only Alfa Romeo, Peugeot, and Jeep within Stellantis showed growth, while Fiat, Lancia, DS, Maserati, and Abarth suffered significant losses, and Citroen and Opel saw double-digit declines.
Tesla also saw a considerable drop, with its market share shrinking from 2.4% to 1.6%. For the first time, SAIC Motor (MG) surpassed Tesla, selling 162,153 vehicles (a 22% increase), while Tesla’s sales fell by 33% to 109,264 units. The updated Model Y did not deliver the expected sales boost, and increased competition from BYD and Volkswagen is challenging Tesla’s leadership.
Electric Vehicle Sales Exceed 1 Million
The European electric vehicle (EV) market continues to grow. For the first time, EV sales surpassed 1 million units in the first half of 2025, reaching a total of 1,193,397 vehicles, marking a 25% annual increase. However, the growth rate slowed in June, dropping to 15%.
EVs accounted for 17.4% of total sales in Europe during the first half of 2025, an increase of 3.6 percentage points compared to the same period last year. Excluding Tesla, BYD had the highest EV share among manufacturers at 64%. However, Chinese manufacturers like BYD and SAIC (MG) observed a decrease in their EV sales proportion compared to the first half of the previous year.
Clio Leads in June, Sandero Tops First Half
On a model basis, the Tesla Model Y was the best-selling electric car in Europe in both June and the first half of 2025. In the overall model rankings, the Renault Group showed strong performance. The Renault Clio took the lead in June with 27,200 units, followed by the Model Y. For the entire first half of 2025, another Renault Group vehicle, the Dacia Sandero, was the best-selling model.
Top-Selling EVs in Europe (H1 2025) ⚡
| Rank | Model (June 2025) | Units (June 2025) | Rank | Model (H1 2025) | Units (H1 2025) |
| 1. | Tesla Model Y | 23,821 | 1. | Tesla Model Y | 68,801 |
| 2. | Tesla Model 3 | 10,849 | 2. | Volkswagen ID.4 | 40,335 |
| 3. | Skoda Elroq | 9,679 | 3. | Tesla Model 3 | 39,864 |
| 4. | Renault 5 | 6,919 | 4. | Volkswagen ID.7 | 38,113 |
| 5. | Volkswagen ID.3 | 6,822 | 5. | Volkswagen ID.3 | 37,421 |
| 6. | Volkswagen ID.4 | 6,363 | 6. | Kia EV3 | 35,023 |
| 7. | BMW iX1 | 6,342 | 7. | Renault 5 | 34,206 |
| 8. | Volkswagen ID.7 | 5,773 | 8. | Skoda Elroq | 34,076 |
| 9. | Skoda Enyaq | 5,686 | 9. | Skoda Enyaq | 32,806 |
| 10. | Kia EV3 | 5,211 | 10. | BMW iX1 | 31,337 |
Top-Selling Cars in Europe (H1 2025) 🚗
| Rank | Model | Units |
| 1. | Dacia Sandero | 128,842 |
| 2. | Renault Clio | 122,489 |
| 3. | Peugeot 208 | 109,146 |
| 4. | Volkswagen T-Roc | 106,118 |
| 5. | Volkswagen Golf | 104,162 |
| 6. | Volkswagen Tiguan | 97,508 |
| 7. | Dacia Duster | 97,188 |
| 8. | Peugeot 2008 | 96,378 |
| 9. | Citroen C3 | 95,891 |
| 10. | Toyota Yaris Cross | 95,513 |
Do these trends signal a lasting shift in the European automotive landscape, with Chinese brands continuing to challenge established players?
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