Tag Archives: European market

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Tesla Struggles in Europe as Rivals Gain Ground Amid EV Boom

Tesla is facing a sharp downturn in Europe, with new car registrations falling 27.9 percent in May compared to the same month last year. The figures mark the fifth consecutive month of decline for the American electric vehicle (EV) giant, according to data from the European Automobile Manufacturers’ Association (ACEA).

The decline is particularly striking given the broader market trend: overall electric vehicle sales in Europe surged by 27.2 percent during the same period. While EV adoption is accelerating across the continent, Tesla’s dominance is clearly waning as competition intensifies and consumer sentiment shifts.

At the heart of the issue is the Model Y, once a market leader, which is now struggling to maintain its edge. Despite a recent refresh aimed at reviving interest in Tesla’s lineup, the model no longer commands the same loyalty or appeal. In May, the Model Y was still the top-selling electric car in Europe with 10,357 registrations — but this figure represents less than half of its former performance.

Meanwhile, rivals are closing in fast. Skoda’s newly launched electric SUV, the Elroq, recorded a strong debut with 9,222 registrations in May, underscoring the increasing pressure Tesla faces from both legacy automakers and new Chinese entrants.

Overall, the European car market grew modestly by 1.9 percent in May, with the most significant growth coming from plug-in hybrids and alternative fuel vehicles. Yet, Tesla’s market share fell to just 1.2 percent — a steep drop from 1.8 percent a year ago.

Industry analysts suggest multiple factors are behind Tesla’s slump. Price-sensitive consumers are increasingly turning to more affordable Chinese EVs. At the same time, some buyers are reportedly turning away from the brand in protest over the controversial public persona and political stances of Tesla CEO Elon Musk.

The company’s position in Europe is further complicated by ongoing trade tensions between the EU and China. As traditional manufacturers and emerging brands rapidly expand their EV portfolios, Tesla must now compete on more than just innovation — it must also win back public trust and offer better value in an increasingly crowded market.

While the EV revolution in Europe shows no signs of slowing, Tesla’s role as the segment leader is far from secure.

Source: Reuters

News

Chinese Carmakers Double Market Share in Europe Amid Sales Surge

The surge of Chinese car brands in Europe continues at full throttle, with a record-breaking performance in May that underscores their growing dominance in the region’s automotive market.

According to recent figures published by Automotive News, Chinese car manufacturers have significantly expanded their footprint in Europe. In May 2025, sales soared by an impressive 85 percent compared to the same month last year, reaching a total of 60,215 units. This rapid growth translated into a 5.4 percent market share on the continent—up from just three percent in May 2024 and 4.6 percent in April this year.

This expansion comes against the backdrop of modest overall growth in the European auto market, which rose by 1.3 percent year-on-year to 1,116,095 units sold.

Among the standout performers, BYD (Build Your Dreams) posted the largest absolute sales increase. The Chinese electric vehicle giant sold 13,580 units in May—more than triple its performance from the previous year—driven largely by the success of its Seal U model, which accounted for over 7,000 of those sales.

Meanwhile, Chery led in terms of percentage growth. The company recorded a staggering 900 percent increase in sales, with 7,963 vehicles sold in May, up from just 796 units in the same month last year.

MG Motor, a subsidiary of SAIC, remains the leading Chinese brand in Europe. In May, MG saw a 27 percent increase in sales, totaling 26,855 units. The MG 3 emerged as the most popular model. Over the first five months of 2025, MG sold 126,493 vehicles, followed by BYD with 54,986 units and Chery with 29,539 units.

Chinese manufacturers have also adapted quickly to shifting market dynamics. In response to the European Union’s newly imposed tariffs on Chinese electric vehicles, many brands have pivoted toward alternative powertrains. As a result, sales of plug-in hybrid models have surged by 874 percent, while full hybrids recorded a dramatic 991 percent increase. Even sales of traditional gasoline-powered cars grew by 20 percent.

The data reflects a broader trend: Chinese automakers are no longer niche players in Europe. With competitive pricing, an expanding model range, and strategic adaptation to regulatory challenges, they are positioning themselves as serious contenders in the global automotive race.

Source: Automotive News

News

Kia Walks a Tightrope in Europe’s Shifting Auto Market

Selling cars in Europe today is no longer just about satisfying consumer demand—it’s about navigating a complex web of regulatory requirements, economic pressures, and shifting market preferences. And no automaker illustrates this balancing act better than Kia.

Despite the European Union’s aggressive push toward electrification, combustion-engine vehicles still dominate the roads. According to data from the European Automobile Manufacturers’ Association (ACEA), electric vehicles (EVs) accounted for just 15.3% of new car sales in the EU during the first four months of the year. Yet the regulatory noose is tightening: the EU is pressing ahead with stricter CO₂ emissions limits and has mandated that all new cars sold from 2035 onward must be electric.

Caught in this tug-of-war is Kia, which is carefully trying to strike the right balance. “If we rely too much on combustion cars, we risk not reaching the CO₂ targets and having to pay fines. If we push EV sales too much, we end up denting our profit margins,” said Carlos Lahoz, Vice President of Sales for Kia Europe, in an interview with Automotive News Europe.

The dilemma isn’t unique to Kia. Across the continent, automakers are grappling with a similar paradox. Traditional internal combustion engine (ICE) vehicles are still more profitable and in higher demand, but EVs are essential to meet emissions targets and avoid hefty fines. Volkswagen and Renault have both voiced fears that failing to comply with new EU emissions standards could cost them billions of euros as early as 2025.

The EU has somewhat eased the pressure by allowing carmakers to average their emissions over the 2025–2027 period rather than hitting targets in 2025 alone. Still, the road ahead is steep. Stellantis’ chairman recently revealed that over a quarter of engineers’ working hours are now consumed by regulatory compliance tasks, much of it related to emissions standards.

At the heart of the problem is a lack of profitability in the EV sector. Lahoz acknowledged that battery costs remain a major hurdle, preventing electric vehicles from achieving cost parity with their gas-powered counterparts. As a result, Kia must use profits from ICE models to fund the transition to electric—a strategy echoed by many automakers across Europe.

Nonetheless, Kia is proving that strategic flexibility can pay off. The South Korean brand is enjoying a strong year in Europe, capturing a 4.1% market share in the EU, EFTA, and UK combined during the first four months of 2025. That puts it ahead of several well-established rivals, including Ford (3.4%), Opel/Vauxhall (2.9%), Citroën (2.8%), Fiat (2.3%), and SEAT (1.7%). Impressively, it even surpassed its larger affiliate Hyundai (3.9%).

For now, Kia’s strategy hinges on maintaining a careful equilibrium: continuing to sell ICE vehicles to support short-term profitability, while steadily growing its EV lineup to ensure long-term survival in an increasingly green automotive landscape. Whether that tightrope walk can remain sustainable as regulations tighten and competition from low-cost EV manufacturers, particularly from China, intensifies remains to be seen.

But one thing is clear—Europe’s automotive future is electric, and Kia, like the rest of the industry, must evolve without stumbling.

Source: Automotive News Europe