Automakers called for Europe to further stimulate demand for battery-powered vehicles after sales of all new cars fell in June by the most in 10 months.
Registrations dropped 5.1% to 1.24 million vehicles, the European Automobile Manufacturers’ Association said Thursday.
While demand for battery-electric cars continues to rise, sales grew at the slowest pace this year.
“Consumers clearly remain cautious, and more robust demand measures will remain a crucial element to get the transition up to speed,” the trade group known as ACEA said in an emailed statement.
Europe’s carmakers can ill afford any slack in demand for EVs in their home market. Volkswagen, BMW and Mercedes-Benz all continue to lose ground in China, where increasingly competitive domestic manufacturers are squeezing both their volume and pricing.
Other major players are dealing with tumult in top management, with Stellantis NV having recently named a new chief executive officer and Renault SA seeking a permanent CEO.
The European Commission has somewhat eased the pressure carmakers are under by granting them a three-year window to hit stricter carbon dioxide emissions targets that had been set to take effect this year.
For those manufacturers that operate in the US, however, President Donald Trump’s tariffs on imported vehicles and parts have put billions of euros’ worth of earnings at risk.
European car stocks were mixed in early trading Thursday, with the weaker sales data tempering optimism over a potential tariff deal between the US and European Union.
Volkswagen and BMW gained as much as 2.4% and 2.5% respectively in Frankfurt, while Stellantis fell as much as 1.9% in Milan.
The biggest source of volume decline last month was Germany, the region’s largest auto market. Registrations fell 14% in June and were down 4.7% in the first half of the year.
Sales also slumped 17% in Italy and 6.7% in France last month.
Across the region, plug-in hybrids remain a bright spot. Registrations jumped 38% in June as buyers increasingly opt for models that combine electric driving with a backup combustion engine.
Fully electric vehicle sales rose 14% for the month, helped by new-model launches and lingering government incentives in some countries.
Still, adoption rates remain uneven across Europe, reflecting patchy infrastructure and divergent national policies.
The UK last week reintroduced grants of as much as £3,750 ($5,100) to support EV purchases, three years after the previous government ended subsidies for private buyers.
New-car sales in the country rose 6.7% in June.
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