Overview

• European new car sales grew 2.8% year-on-year in March 2025, with electrified vehicles accounting for 59.2% of registrations.
• Sales of fully electric vehicles in Europe increased by 23.6%, reflecting growing consumer interest and stricter EU emission targets.
• Tesla's European sales fell 45% in Q1 2025 and 36% in March, marking the largest decline among major automakers despite overall EV market growth.
• Tesla's challenges include U.S. tariffs on auto imports, heightened competition from Chinese automakers, and backlash tied to Elon Musk's political role in the U.S.
• European automakers face rising costs, policy uncertainty, and infrastructure gaps as the EU pushes for the phaseout of fossil fuel vehicles by 2035.