European Car Registrations Rise 5.9% in July, Stellantis Reports 1.1% Decline

European car registrations rose 5.9% YoY in July, driven by strong performances in Spain and Germany. Italy and France experienced declines. Stellantis reported a 1.1% YoY drop, with its market share slipping to 13.9% from 14.9% last year. Registrations of battery electric vehicles surged 33.6% to 186,440 units.

European Union (EU) trade chief Maros Sefcovic announced that the EU will strive to ensure lower US tariffs apply to its car exports retroactively, as the transatlantic partners finalize their framework trade deal struck in July. This move comes amidst rising European car registrations, with a notable 5.9% year-over-year (YoY) increase in July, driven primarily by strong performances in Spain and Germany. Italy and France, however, experienced declines [1].

According to the joint statement released by the EU and the US, 15% US tariffs will apply to most EU imports, while the EU has pledged to eliminate tariffs on US industrial goods and provide preferential market access for a wide range of US seafood and agricultural goods. The US, in turn, has committed to reducing the 27.5% tariffs on cars and car parts once the EU introduces the necessary legislation. The tariff relief is expected to take effect from August 1 [1].

Stellantis, a major player in the European automotive industry, reported a 1.1% YoY drop in registrations, with its market share slipping to 13.9% from 14.9% last year. The company's performance highlights the broader trend in the sector, with a significant increase in battery electric vehicle (BEV) registrations, surging 33.6% to 186,440 units. This growth underscores the EU's commitment to promoting sustainable transportation [1].

The joint statement also reiterated the EU's intention to procure $750 billion in US liquefied natural gas, oil, and nuclear energy products, as well as an additional $40 billion in US-made artificial intelligence chips. Furthermore, the EU agreed to invest an additional $600 billion in US strategic sectors through 2028. The two sides also committed to addressing "unjustified digital trade barriers" and ring-fencing their respective steel and aluminum markets from overcapacity [1].

The EU's push for lower US car tariffs is part of a broader effort to strengthen the transatlantic trade relationship. The framework trade deal, announced by US President Donald Trump and European Commission president Ursula von der Leyen on July 27, is seen as an historic accomplishment that could be expanded over time to cover additional areas and further improve market access. The joint statement serves as a play to hold each other accountable and ensure the fulfillment of the pledges announced last month [1].

References:
[1] https://www.sowetanlive.co.za/amp/motoring/2025-08-25-eu-pushes-to-secure-lower-us-car-tariffs/