In July 2025, the Western European PV market improved nearly 4% YoY as sales reached 950k units. However, the selling rate eased fractionally to 11.5 million units/year. Overall, 2025 continues to be a tough year for the market as YTD sales are marginally worse (-0.5% YoY) than 2024, now standing at just over 7 million units.
Across the five major markets in the region, sales remained mixed in July. Spain continued its strong run of growth as sales were up double digits YoY, while Germany also saw its best result since April 2024, a reversal from the negative trend seen throughout the year. Conversely, France, Italy, and the UK all saw declines; the drop in the French market being the most notable, having fallen on a YoY basis in every month of 2025.
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Commentary
For July, the PV selling rate for Western Europe stood at 11.5 million units/year, slightly down on June. The market did improve in YoY terms by 4% with most markets experiencing some level of growth; however, three of the big five markets fell at least 5% YoY.
Of the big five markets, Spain and Germany saw solid growth in July. Spain recorded a third consecutive month of growth over 15% YoY as well as its eleventh consecutive month of overall growth, as the combination of the Reinicia Auto+ Plan, the rise in electrified vehicle registrations supported by government incentives from the MOVES Plan, and effective promotional efforts by brands, continue to boost sales. Spanish PV sales totalled 98k units. Sales in Germany were surprising as the market saw its second month of growth in 2025 and its best result since April 2024, as sales reached 265k units. Economic sentiment in Germany is improving due to the German government’s diversion from austerity measures.
For the rest of the big five markets: France, Italy, and the UK, July painted a different picture. In France, the PV market recorded its seventh consecutive decline as sales fell to 116k units. Political uncertainty, especially around the country’s fiscal deficit is having real effects on consumer and business confidence. Furthermore, recent regulatory changes implemented in February, including a reduction in BEV incentives and a stricter malus tax on carbon emissions, have also influenced consumer behaviour and market dynamics. In the UK, sales declined to 140k units due to a significant drop in demand from both private and fleet buyers. Finally, sales in Italy fell to 118k units primarily due to uncertainty surrounding the revision of CO2 regulations for light vehicles, which has left potential buyers hesitant to invest in new all-electric vehicles.
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By GlobalData
This article was first published on GlobalData’s dedicated research platform, the Automotive Intelligence Center.
