Europe’s carmakers are grappling with tariffs and fierce competition amid the shift to EVs. As European Commission President Ursula von der Leyen prepares to meet industry leaders Friday to discuss the future of the auto sector, new sales and market share data reveal how the sector is reshaping.
Europe’s car industry is under strain, squeezed by Trump tariffs, fierce competition from China and the costly demands of meeting domestic rules for electric vehicle adoption.
The sector, which accounts for more than 7% of EU GDP and employs more than 13 million people, faces mounting pressure to stay competitive while absorbing the financial weight of the transition to cleaner mobility.
The EU’s next steps in response to these challenges will be crucial in shaping the future of the automotive sector, a key industry for the region.
EU car sales by the numbers
According to newly released data from the European Automobile Manufacturers’ Association (ACEA), EU new car registrations in the first seven months of 2025 fell 0.7% compared with the same period last year.
EU car sales rose 7.4% in July 2025, with Volkswagen and Renault posting strong gains, while Stellantis slipped. Tesla, meanwhile, saw sales plunge by 40.2%.

