The EU’s new-car market suffered further decline in March, seeing a 0.2% dip in registrations albeit equating to 2,370 fewer units delivered across the 27 member states. When adding in the EFTA and UK regions, the European market actually grew by 2.8%.

A total of 1,029,520 units were delivered to EU customers in March, although down in what is typically a high-volume period. Both France and Germany recorded drops in the month, of 14.5% and 3.9% respectively. It was left to fellow big four markets Spain and Italy to post significant growth, with rises of 23.2% and 6.3% respectively.

Some European automotive stocks reacted positively recently to US President Donald Trump’s plans to ease pressure on the global car industry, which has been in the front line of the trade war. But this potential uplift to the sector’s share prices was tempered by more disappointing earnings from the region’s key carmakers. Under a new executive order, foreign carmakers will no longer be subject to both the 25% import tax on complete vehicles and the 25% duty on steel or aluminum used in production—only the higher of the two will apply. Automakers that assemble cars in the US will be eligible for partial rebates on import duties—up to 3.75% of a vehicle’s value in the first year, dropping to 2.5% the following year—before being phased out completely by 2027. Trump also granted the industry a two-year grace period to adjust supply chains and bring more production back to the US, citing the need to reduce reliance on foreign parts.

Three of the four largest markets in the EU, including Germany, recorded robust double-digit growth in the EV sector. Battery Electric Vehicle sales had risen by almost a quarter, giving a boost to the entire European car market in Q1 of 2025, as the European car manufacturing industry continues to deal with uncertainty due to trade tensions across the globe.

In Q1 2025, new EU car registrations declined by 1.9% compared to Q1 2024, with March 2025 figures showing a slight 0.2% year-on-year decline as the global economic context remains particularly challenging, stated ACEA. In the first three months of 2025, new EV sales jumped by 23.9% in Europe, amounting to 412,997 units. Meanwhile, the market share of battery electric vehicles increased to 15.2% from 15% in January. Three of the four largest markets in the EU, accounting for 63% of all EV sales, recorded robust gains: Germany (+38.9%), Belgium (+29.9%), and the Netherlands (+7.9%). This contrasted with France, which saw a decline of 6.6%.