Zoltan Venczel

Europe’s Automotive Market 2025: Electrification Gains Momentum, Differences Between Leading Markets Increase   The European automotive market (including the UK and EFTA) recorded slight growth in 2025 despite ongoing economic uncertainties. New passenger car registrations in the European Union increased by 2.4 percent year on year, but still remain 16 percent—or 2.5 million vehicles—below the pre-COVID level of 2019. Registrations remain weak in the major markets of Germany, France, and Italy, while countries such as Spain and several Eastern European markets recorded strong growth.   Electrified powertrains are the main growth drivers of the European market. Battery electric vehicles (BEVs) grew by around 30 percent to 2.6 million units, reaching a market share of 19.5 percent. Plug-in hybrids reached 1.27 million units (+33 percent), while full hybrids and mild hybrids together grew by 12 percent, achieving market shares of 13 percent and 22 percent respectively. In contrast, the market share of gasoline-only powertrains fell to 26.1 percent (–19 percent), and diesel engines declined to 7.8 percent (–24 percent).   The frontrunners of electrification are the Scandinavian countries Norway, Denmark, and Sweden, with BEV shares of new registrations of 96 percent, 69 percent, and 37 percent respectively, as well as the Netherlands and Belgium with 40 percent and 35 percent. In Europe’s five largest volume markets—Germany, the United Kingdom, France, Italy, and Spain—an increasing differentiation in powertrain mixes and market dynamics can be observed.   Germany is emerging in 2025 as the most important growth driver of electromobility in Europe. BEV registrations increase by more than 43 percent, while plug-in hybrids grow by over 62 percent. At the same time, gasoline and diesel registrations each decline by nearly 20 percent. The United Kingdom records moderate overall market growth of around 3.5 percent. Electrified powertrains also grow above average here, especially BEVs, which increase by 24 percent. France presents an ambivalent picture. BEV registrations rise by 12.5 percent and hybrid vehicles even by more than 21 percent, while the overall market declines by 5 percent. The drop is particularly pronounced for gasoline and diesel vehicles, each falling by more than 30 percent. Italy remains a strongly hybrid-oriented market. Hybrid vehicles continue to dominate sales and grow by nearly 8 percent. At the same time, battery electric vehicles record strong growth of more than 44 percent, albeit from a comparatively low base. Spain becomes the most dynamic growth market among the major European countries in 2025. The overall market grows by 12.9 percent, BEVs increase by more than 77 percent For deeper market insights, competitive strategies, and technology trends, we recommend our Electromobility Report 2025: https://lnkd.in/e9ENmkFz

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😎🚗🚚 🚌 OICA's top 5 automotive news stories of the day: Carmakers Idle Plants, Rethink Prices as Trump’s Tariffs Hit Bloomberg – Gabrielle Coppola, Amy Stillman, David Welch – April 3, 2025 Automakers worldwide halted production, launched discounts, and raised prices after Trump’s 25% tariffs on car imports took effect. Stellantis paused Canada/Mexico output; Mercedes considered U.S. model withdrawals. Industry braces for parts tariffs, price hikes, and long-term global supply chain disruption. 🔗 https://lnkd.in/etaUQx3x Europe reacts as Trump’s 25% auto tariffs take effect Automotive News Europe – Peter Sigal – April 3, 2025 European automakers warned U.S. tariffs would raise prices and hurt global trade. Germany and U.K. condemned the move; Volkswagen and Volvo plan U.S. production shifts. Analysts forecast serious revenue hits from upcoming parts tariffs. EU officials urge negotiations over economic retaliation. 🔗 https://lnkd.in/ewETt2Qw With Trump tariffs in place, Toyota and Honda hold U.S. prices steady Nikkei – Ryosuke Hanada – April 4, 2025 Despite 25% tariffs, Toyota and Honda are keeping U.S. prices stable short-term, relying on inventory and sales momentum. Japan’s auto industry urges government action, fearing supplier strain and long-term production risks. Parts tariffs could hurt smaller manufacturers. 🔗 https://lnkd.in/eq6dzscb Canada to match 25% U.S. auto tariffs Automotive News – David Kennedy – April 3, 2025 Canada imposed 25% retaliatory tariffs on U.S. vehicles, sparing parts used in local assembly. Stellantis paused Windsor production, with 1,000 layoffs. Canada aims to protect its auto sector, warning of economic fallout and calling Trump’s tariffs misguided and unjustified. 🔗 https://lnkd.in/eb86PU2w Trump's auto tariffs to cover more than $460 billion of US vehicle, parts imports Reuters – David Lawder, Jason Lange – April 3, 2025 Trump’s 25% auto tariffs will apply to over $460 billion in imports, including 150 categories of parts like batteries and electronics starting May 3. The scope raises global supply chain concerns. More parts may be added through a pending review process. 🔗 https://lnkd.in/e3M-7aW4 👉 Due to the OICA Mid-Year Council in Washington DC, the next "5 major news" will be on 04/14/2025

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Is Renault dancing with wolves & why? CHERY and Renault are in talks for cooperation in South America, according to various sources in France and China. As other European automakers, Renault is struggling with its intelligent and electrification transformation. As one of its strategies to overcome these challenges, Renault is actively expanding its partnerships to compensate for its relatively smaller scale. The company is repositioning markets such as South America and India in South Asia as priority international targets for its renewed efforts. This collaboration with Chery primarily focuses on the Latin American markets as defined by Renault, with operations centered on its bases in Colombia and Argentina. In Colombia, the two parties plan to produce internal combustion engine vehicles provided by Chery at Renault's Envigado plant, with the majority of these vehicles to be sold under the Renault brand and a small portion under the Chery badge. In Argentina, based at Renault's Córdoba plant, Chery is considering investing in the establishment of a production line for plug-in hybrid pickup trucks, with Renault acting as the general distributor responsible for the sales of these models. The cooperation talks were initiated during the tenure of Renault's former CEO, Luca de Meo, who took the helm of the French automaker in July 2020 and left in July 2025. During the negotiations, Luca advocated for joint investment by both Chinese and French parties to develop the Southern markets. After François Provost succeeded Luca as Renault's new CEO, he adopted a more cautious approach toward the form of investment for the joint venture. In the latest round of negotiations, the French side has proposed that Chery fully fund the venture. While negotiating with Chery, Renault is already collaborating with GEELY in Brazil. Renault believes that working with two Chinese companies simultaneously in the Latein markets is not conflicting. Given the market size—an annual sales volume of 5 million vehicles—there is ample room for such partnerships.

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Dealer optimism rises as Stellantis scales back EV plans Stellantis retailers are showing renewed optimism as new leadership under Antonio Filosa targets 2026 for a turnaround. The automaker is refocusing on dealer collaboration and market-driven demand after a challenging period. The company is adjusting its product strategy, deprioritizing plug-in hybrids for conventional hybrids, scaling back EVs, and reviving the popular Hemi engine and SRT performance unit. A $13 billion U.S. investment will expand production including new Ram models. Despite seven consecutive years of sales declines, recent momentum is building. Jeep posted a 1% sales increase, while Ram 1500 sales jumped 23% in Q4. Dealer sentiment is improving as Stellantis positions retailers as central partners in its recovery. ——— Thanks to our sponsor: Joe Verde Sales & Management Training, Inc. (https://www.joeverde.com/)

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🚗 Filosa’s Europe Agenda: Fixing Cash Flow, Repositioning Brands, and Accelerating Transition As Stellantis CEO Antonio Filosa takes the helm, Europe emerges as the key pressure point — and opportunity — for the group’s turnaround. 🔍 Core priorities include: • 🔧 Rebuilding the van segment, a cornerstone of Stellantis’ European volume and profitability, amid weakening fleet demand and rising cost pressures. • 🏁 Repositioning Maserati, after writing down €700M in EV platform value. The brand’s path forward demands either rapid electrification alignment or a redefinition of its luxury value proposition. • 💸 Reining in cash burn, following a €6B outflow in 2024 and €2.3B loss in H1 2025. Operational discipline and lean brand governance are no longer optional. 📊 Strategically, Europe serves as the ideal laboratory to: • Pilot more capital-efficient brand architectures • Test regional EV pricing power and consumer loyalty • Streamline operations before applying lessons globally 🧭 Filosa’s challenge is not just financial — it’s structural: How to transform a multi-brand legacy group into an agile, technology-driven automaker capable of weathering geopolitical risks and shifting demand curves. #Stellantis #AutomotiveStrategy

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Big changes are underway at Stellantis. According to Reuters, the company’s new CEO, Antonio Filosa, could earn up to $23 million per year by 2028—though that still falls well short of what his predecessor Carlos Tavares made. #carsadvisor #stellantisgroup #Stellantis #carnews

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Volvo Cars CEO Håkan Samuelsson called the brand’s next new model — the EX60 midsize crossover — a “big step” toward achieving key criteria drivers for electric vehicles: affordability, range and charging speed. “Consumers will buy [EVs] as soon as the price will be more or less on the level of a [gasoline] car,” Samuelsson told Automotive News. “That will happen in the next couple of years, and we will take a big step with the EX60” in achieving price parity, he said. Although the Sept. 30 end of a $7,500 federal EV tax credit in the U.S. is expected to slow demand near term, Samuelsson expressed confidence in Volvo’s ability to grow its market share. “It’s good to have goodies from the government short term, but that will never drive electrification,” he said. “Electrification will be driven by better cars.“ Key to the EX60’s competitive cost and features is the new SPA3 platform the crossover will ride on when it arrives at U.S. dealerships by the second half of 2026. Volvo expects SPA3 EVs to have gross margins 8 to 10 percentage points higher than first-generation EVs underpinned by the compact modular architecture. Volvo Chief Commercial Officer Erik Severinson said the EX60 will ride on a tailor-made platform for EVs. “It’s designed bottom-up from Day 1 to be born electric,” Severinson said. “We have great hope with that car of hitting a different level of customer than what today’s electric cars can do.”

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Great discussion with Laurence Iliff from Automotive News last week. We covered several themes that continue to define where the global auto industry is heading—and why China remains the reference point, not just a competitor. Key takeaways from our conversation: 🔹 China is no longer “catching up.” It is setting the pace on EVs, software-defined vehicles, supply-chain integration, and speed-to-market. The competitive gap is now structural, not cyclical. 🔹 The real disruption is organizational, not technological. China’s advantage comes from ecosystem orchestration—what I often describe as Tier-0.5 logic—where hardware, software, and manufacturing are co-developed rather than sequentially integrated. 🔹 EVs are just the entry ticket. The battleground has shifted to software architectures, AI-enabled features, cost discipline, and the ability to scale platforms globally. 🔹 Western OEMs face a strategic choice. Compete on legacy processes and incrementalism—or rethink operating models, partnerships, and decision velocity to match a very different system logic. 🔹 Globalization isn’t ending—it’s being re-written. The next phase will be defined by selective localization, ecosystem partnerships, and cross-border technology flows—not simple export models. More to come. #Automotive #ChinaAuto #EVs #MobilityTransformation #Automobility #Tier05 #SoftwareDefinedVehicles #GlobalCompetition #AutomotiveNews

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🧭 Two strategies, one destination: The EV & ADAS race. Two divergent roads toward the same goal — sustainable EV profitability. 🔹 GM is quietly compounding value through scale and recurring ADAS revenue. 🔹 Tesla is swinging for a paradigm shift: autonomy first, EVs as the gateway. 🚗 GM is playing the long game: scale + software. Think Detroit SaaS — high-volume EVs with subscription-like ADAS features layered on top. It’s a margin engine built on predictable revenue streams and manufacturing muscle. 🚀 Tesla is betting big on autonomy. The robotaxi vision offsets EV margin pressure, but if autonomy adoption slows, the affordable EV becomes mission-critical to reignite unit growth. ⚖️ Regulation is the wildcard: • Tesla needs approval for unsupervised FSD and robotaxi deployment. • GM needs broader green lights for hands-free systems across fleets. This image says it all: 💰 profit today vs. 🚀 future moonshots. Question is — which approach will truly shape our roads by 2030? #EV #ADAS #AutonomousVehicles #Mobility #Innovation #Tesla #GM #FutureOfTransport #Strategy

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The Great EV Disruption: American and European OEMs at a Crossroads: The automotive world is in a state of disarray, and it's not a secret. American and European legacy automakers (OEMs) are facing a perfect storm of challenges, creating a sense of confusion and a lack of clear direction in their EV strategies. On one hand, there's immense pressure to electrify from regulatory bodies and climate goals. On the other hand, the market is sending mixed signals. Consumers are hesitant due to high prices, a lack of charging infrastructure, and concerns over resale value and battery longevity. This has led to a major shift in focus from some players towards hybrids, which are seeing significant growth as a middle-ground solution. This strategic pivot is a direct result of the complex landscape: * Affordability Gap: The market for premium, $60,000+ EVs is saturated, while the mass-market, sub-$45,000 segment remains largely underserved. Traditional automakers are struggling to produce affordable EVs profitably. * Infrastructure Anxiety: The promise of a seamless charging experience remains unfulfilled. The uneven rollout of public chargers, especially in certain regions, coupled with reports of non-functioning stations, is a major barrier to mass adoption. * Intense Competition: The landscape is no longer just about Ford Motor Company vs. Volkswagen Group. New, agile players like Tesla and, more importantly, a rising tide of Chinese OEMs are dominating the EV space with lower-cost models and rapid innovation. This is putting immense pressure on legacy companies' market share and profitability. * Political Uncertainty: Fluctuating government policies and the potential for a rollback of EV incentives are adding a layer of risk and unpredictability that makes long-term planning difficult. So, where is this all heading? My prediction is that this period of disarray will lead to a painful but necessary consolidation. The path forward for American and European OEMs is not to simply out-innovate Tesla, but to strategically adapt to the new reality. We will see: A "Hybrid" Future: The hybrid vehicle will be the bridge to mass electrification for the next decade. It provides the environmental benefits and cost savings of electrification with the familiarity and convenience of gasoline, appealing to a much broader consumer base. The future is still electric, but the road to get there is proving to be far more winding and challenging than many anticipated. The race isn't about who gets there first, but who can navigate the current turbulence and build a sustainable, profitable model for the long haul. #ElectricVehicles #AutomotiveIndustry #OEMs #EVs #FutureOfMobility #HybridCars #AutoIndustry

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General Motors hires new head of strategy from Lucid Motors:  GM said on Monday that Claudia Gast will be the automaker's deputy chief financial officer and vice president of strategy, corporate development and technology partnerships. In the role, Gast will help shape GM’s long-term strategic direction while identifying and developing partnerships across technology, mobility and innovation-focused sectors. #electricmotors #electricandhybridvehicles https://lnkd.in/gGaF3KA4

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