GlobalData
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According to GlobalData, Western Europe’s passenger vehicle (PV - cars) annualised selling rate stood at 10.9 million units/year in May, down from the 11.2 million units/year observed for April. Sales volumes totalled just under 1 million new vehicles, a 2% improvement YoY. YTD sales are now just under 5 million units, broadly flat compared to the same period in 2024. Spain continues to shine as the standout performer, while the French market is among those grappling with YoY losses.
In recent months, the Western European PV market has struggled to meet expectations, primarily due to declining consumer confidence stemming from inflation worries, potential heavy US trade tariffs, and broader economic uncertainty. This year, there has been a downturn in sales across three of the five largest markets—France, Germany, and Italy. GlobalData continues to forecast sales to fall short of 2024’s result, the current outlook seeing sales totalling 11.4 million units (-1% YoY).
The PV selling rate for Western Europe fell in May to 10.9 million units/year. YoY sales improved circa 2%, totalling 988k units. Sales results across the region present a mixed picture; however, the continued decline in sales from a majority of the major five markets is hindering overall growth.
On a positive note, the German PV market grew for the first time in 6 months in May 2025. Sales were up around 1% YoY, reaching 239k units. YTD sales reached 1.15 million units, down over 2% compared to the same period in 2024. The latest PV sales were 28% lower than May 2019’s volumes. While last month's growth is encouraging, sales are expected to remain sluggish due to prevailing uncertainty, which is impacting consumers' willingness to invest in durable goods such as PVs.
The UK PV market improved last month as sales totalled 150k units, up nearly 2% YoY. Sales grew due to a rise in fleet and business registrations. Additionally, the significant growth in BEVs and PHEVs, driven by attractive manufacturer incentives, contributed to the overall market improvement. YTD sales now stand at 851k units, up nearly 3% from the same period in 2024.
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The Spanish PV market remains a key driver of growth, up nearly 19% YoY and are up close to 14% YTD. Sales increased due to fleet renewal, a rise in electrified vehicle registrations, vehicle replacements from the DANA weather event, and effective government incentives like the MOVES 2025 Plan.
The French PV market appears to be in free fall as sales have fallen YoY in twelve out of the last thirteen months, with this month’s result down over 12% from May 2024. February's vehicle regulation changes are impacting sales, while trade conflicts and political instability are reducing consumer confidence and economic growth. In Italy, sales remained broadly flat in May, though the market did post the worst selling rate since 2022.
