CORRECTED-European car sales slump in June as automakers' woes deepen

By Alessandro Parodi

July 24 (Reuters) - New car sales in Europe fell more than 5% in June, the European Automobile Manufacturers Association (ACEA) said on Thursday, in a reflection of the global challenges faced by automakers.

Tesla TSLA.O lost market share for a sixth consecutive month despite a rise in overall sales of electric cars, while the four best-selling groups in Europe, Volkswagen VOWG.DE, Stellantis STLAM.MI, Renault RENA.PA and Hyundai 005380.KS, all sold fewer cars than in June 2024.

WHY IT'S IMPORTANT

European auto makers have booked multi-billion losses and issued profit warnings as they struggle to handle competition from China, U.S. import tariffs of 25%, and domestic regulations aimed at speeding up the EV transition.

BY THE NUMBERS

Sales in the European Union, Britain and the European Free Trade Association fell 5.1% in June from a year earlier, to 1.24 million cars, ACEA data showed.

Registrations at Volkswagen, Stellantis, Renault and Hyundai dropped 6.1%, 12.3%, 0.6% and 8.7%, respectively.

Tesla's sales were down 22.9%, and its market share contracted to 2.8% from 3.4% a year ago.

The share of brands not accounted for by the ACEA, including BYD 002594.SZ and other Chinese carmakers, more than doubled to 4.5%.

In the EU, total car sales fell 7.3% year-on-year, even as registrations of battery electric (BEV), hybrid electric (HEV) and plug-in hybrid (PHEV) cars rose 7.8%, 41.6% and 6.1%, respectively.

The three types of electrified vehicles accounted for 59.8% of EU passenger car registrations in June, up from 50% a year earlier.

Overall sales in Germany, France and Italy fell 13.8%, 6.7% and 17.4%, respectively, while they rose 6.7% in Britain and 15.2% in Spain.

QUOTE

"While drivers clamour for cleaner, cheaper cars, dynamic new brands are stepping up to fill the gap left by some incumbents who have been too slow to give the customers what they want," said Ben Nelmes, founder of EV data analysis firm New AutoMotive.