AAM Market Trends in Europe

Top 5 Automotive Markets in Europe – Powertrain Trends Jan–Aug 2025   The latest figures show that Europe’s automotive markets continue to transform: while internal combustion engines are losing ground, electrified powertrains and hybrid models are gaining increasing importance.   Germany: Despite a slight decline in total registrations (−1.7%), the market for BEVs (+39.2%) and PHEVs (+61.2%) grew strongly. Full and mild hybrids also increased by +10.1%, while diesel continued to drop (−19.9%). The BEV share stands at 17.9%.   UK: The BEV share of 21.8% is the highest among the top five markets. BEV sales rose by +29.5%, PHEVs by +33.7%, and hybrids by +9.5%, while diesel kept shrinking (−8.2%).   France: The BEV share reached 17.6%, and full and mild hybrids grew significantly by +30.5%. However, overall registrations declined (−7.1%), and diesel fell sharply (−40.1%).   Italy: Despite a slight drop in total registrations (−3.7%), PHEV sales rose by +62.6% and hybrids by +9.4%. BEVs remain behind other countries with just a 5.2% share.   Spain: A particularly dynamic market with +95.6% BEV growth and +99.9% PHEV growth. Hybrids also recorded strong gains of +29.3%.   Europe (EU + EFTA + UK): Overall, the market remained stable (+0.4%) with a clear shift towards electrified powertrains: BEVs +26%, PHEVs +28%, full/mild hybrids +15%, while diesel declined significantly (−25.2%).   Conclusion: The trend is clear: diesel is losing relevance across all major markets, while electrified powertrains continue to gain ground. The transition to more sustainable mobility is in full swing, though progress varies widely across countries.   For a detailed analysis of global market trends and strategies of leading manufacturers, take a look at the Electromobility Report 2025: see link in comments.   #AutomotiveIndustry #Electromobility #EVMarket #BatteryElectricVehicles #HybridVehicles #PHEV #BEV #Europe    

🤑 Brands owned by Chinese 🇨🇳 companies continue to expand into Europe. 🙋♂️ As always, just my personal perspective. Please add your thoughts 💭 below. ➡️ More brands are expanding across Europe, JAC started in Germany 🇩🇪. XPENG is expanding to 5 additional markets: https://lnkd.in/dBTzbjnc ➡️ Local for local is also important for Chinese OEMs. XPENG, Li Auto or Xiaomi Technology are setting up R&D facilities in Munich 🍻. ➡️ Hyped players like Xiaomi or selected HIMA brands (Huawei JVs) will enter 📍 the market within the next 24 months. ➡️ Assembly and production footprint is taking shape: Magna International will assemble semi-knocked-down XPENG SUVs 🚙 in Austria 🇦🇹, BYD and others finalisng the production facilities in Hungary 🇭🇺 or Turkey 🇹🇷. ➡️ Return of the badges 🤷♂️? Stellantis is evaluating plans to bring an Opel-badged Leapmotor B10 SUV to Europe to rival Škoda Auto or VW. Opel lost market share significantly in the last 2 decades, similar to Ford Motor Company and other traditional brands: https://lnkd.in/djZdz4td ➡️ Next to Europe, other global destinations see an increase of imports of Chinese vehicles. The top export destinations are UAE 🇦🇪 with >255k vehicles from January to July 2025 (+ 55%). Mexico 🇲🇽 and Russia 🇷🇺 followed 2nd and 3rd. —— Here is a deep dive into the European dynamics: ➡️ Chinese OEMs triggering one of the most significant structural shifts in the continent’s automotive landscape in decades. ➡️ Brands like BYD, MG or Groups like CHERY or GEELY jump from record to record every month. ➡️ BYD is the powerful but quiet machine, that is rolling into the market bottom up. Volume is up 4x YoY 🚀. The brand outsells Tesla (July, August) and proud local brands like Fiat or SEAT S.A. in selected markets. ➡️ MG Motor Europe is still the best-selling Chinese brand in Europe, but just growing slowly. ➡️ CHERY is speeding up with their brand portfolio: Omoda & Jaeco are positioned in the lower segments, no BEVs are available. The introduction of the Exceed brand should add premium EVs 🔋 to the mix. ➡️ Network expansion drives sales: After experiments with D2C sales and subscription models, we see a revival of physical distribution. BYD wants to expand to 1.000 outlets by end of 2025 and to 2.000 a year later across Europe. Leapmotor is utilizing 600+ Stellantis locations for sales and service. CHERY expands to 19 countries and 100+ dealer locations 📈. ➡️ A strategic shift to PHEVs and hybrids should lower the import tariffs on EVs in Europe and accelerate sales: 10% vs. up to 45.3% import duties are a good reason to leverage hybrids over BEVs from a business perspective. PHEV sales in the first half of 2025 increased 9x vs. the same period a year earlier. ➡️ Significant challenges remain. After-sales service quality, brand recognition deficits, regulatory complexity, and intensifying European OEM counteroffensives present meaningful obstacles. #China #OEMs #Automotive

🇨🇳 Chinese OEMs continue to gain roughly 1ppt of the Western European new passenger car market per quarter this year, according to exclusive Schmidt Automotive Research data. Q3 2025 data shows that Chinese brands accounted for 6.7% of the West European new passenger car market during the most recent quarter and 5.7% year to date, edging ever closer to Koreans accounting for a stable 7.9% market share. Three markets dominated Sino volumes, accounting for two-thirds of the region's total volumes. More details, data, trends and background information in our industry-leading studies, trusted by stakeholders breaching industry divides. Source: https://lnkd.in/eu6xEKN9